mutual fund and euro

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Mutual Funds & Euro

By

Group 4


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Out of Rs. 10,00,000 specified, we wish to

invest Rs. 9,46,200 on Euro Currency. And we

kept Rs.53,800/- as ideal cash.

The reasons and details of our investments are

enumerated in the following slides.

OUR PORTFOLIO


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Mutual Fund is a trust which pool the savings of large number

of investors and then reinvests those funds in equities , bonds,

debentures for earning profits and then distribute the dividend

among the investors. In return for such services, AssetManagement Companies charge small fees.

What are Mutual Funds?


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NAV means Net Asset Value. The investments made by a

Mutual Fund are marked to market on daily basis. NAV isarrived at after deducting all liabilities (except unit capital)

of the fund from the realisable value of all assets and

dividing by number of units outstanding. Therefore, NAV

on a particular day reflects the realisable value that theinvestor will get for each unit if the scheme is liquidated on

that date. This NAV keeps on changing with the changes in

the market rates of equity and bond markets.

Net Asset Value


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The MF industry in India started in 1963 with theformation of UTI at the initiative of GOI & RBI.

History of MF in India can be divided into 4 distinct phases.

1st

Phase (1964-1987)Unit Trust of India UTI was established in 1963 by an act of

parliament & was set up by RBI.

UTI functioned under the regulatory & administrative control of

RBIThe 1st scheme launched by UTI was unit scheme 1964

In 1978 UTI was de-linked from RBI & IDBI took over its

control

By the end of 1988 UTI had Rs.6700 Crores of assets under

management

History of Indian MF Industry


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2nd Phase(1987-1993)

SBI mutual fund is the first non UTI mutual fund

established in june 1987

1987 marked the entry of non UTI, public sector mutual

funds set up by public sector banks, LIC,GIC

3rd phase (1993-2003)With the entry of private sector funds in 1993, a new era started In the

Indian MF industry, giving the indian investors a wider choice of fund

families.

1993, Was the year in which MF regulations came into effect, under

which all MFs except UTI were to be registered & governed by SEBI.


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4th phase

In feb 2003 following the repeal of UTI act

1996, UTI was divided into two separate entities.One is the specified undertaking of UTI with

assets under management of Rs. 29,835 Cr as at the

end of jan 2003, & is governed by GOI.

The second is UTI MF LTD, sponsored by SBI,PNB,BOB & LIC. It is registered with SEBI &

functions under MF regulations.


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Equity/growthBalanced fundGuilt fundIncome/debtMoney marketIndex fundTax saving schemes

Mutual FundsBy Maturity Period By Investment objective

Open Ended

Close Ended


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Open ended funds

Open ended Schemes are those schemes whereinvestors can redeem & buy new units all through out

the year as per their convience at NAV related prices

Close ended fundClose ended Schemes has a stipulated maturity period

e.g 5-7 years. The fund is open for subscription only

during a specified period at the time of launch of thescheme. Investors can invest in the scheme at the time

of IPO there after they can buy or sell units of the

scheme in stock exchanges.


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Balanced fund:The aim of balanced fund is to provide both growth & regularincome as such schemes invest in both equities & fixed income

securities.

These are appropriate for investors looking for moderate

growth.

Growth / Equity oriented scheme:The aim of the growth fund is to provide capital appreciation

over medium or long term investments. Such funds havecomparatively high risks. These schemes provide investors

different options like dividend option, capital appreciation etc.


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ICICI PrudentialBalanced Fund(G)


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er ormance


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Performance for the last 5 years- ICICI MF


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TATA Balanced Fund(G)

I I f


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Investment Info Investment Objective

The investment objective of the scheme is to provide

income distribution and or medium to long term

capital gains while at all times emphasising the

importance of capital appreciation.

P f li


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Portfolio


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performance


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Performance for the last 5 years-TATA MF


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Is investment in Euro Profitable??


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Why to Invest in EURO?


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Investment

On 29th july

Euros bought = 12,000

Cost price of 1 Euro = Rs. 78.85

Investment = 9,46,200/-

Cash in hand= 53,800/-

On 1

st

AugustEuros sold = 12,000

Selling price of 1 Euro = Rs.80.003/-

Profit = Rs. 13,836/-


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THANK YOU!

Documents

mutual fund and euro