SAPM Mutual Funds Final

8/8/2019 SAPM Mutual Funds Final

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SangeetaSangeeta FulwaniFulwani ------ Roll No 66Roll No 66

HitenHiten RughaniRughani ------ Roll No 22Roll No 22

RajRaj ShekarShekar MishraMishra ------ Roll No 54Roll No 54

LokeshLokesh MishraMishra ------ Roll No 31Roll No 31


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Concept of Mutual FundsConcept of Mutual Funds

History of Mutual Funds Industry In IndiaHistory of Mutual Funds Industry In India

Mutual Funds OrganizationMutual Funds Organization

Advantages of Investing In Mutual FundsAdvantages of Investing In Mutual Funds

Types of Mutual Funds SchemesTypes of Mutual Funds Schemes

Net Asset ValueNet Asset Value

Mutual Funds Companies In IndiaMutual Funds Companies In India

Creation of PortfolioCreation of Portfolio

Portfolio RevisionPortfolio Revision


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A Mutual Fund is a trust that pools the savings of a number ofinvestors who share a common financial goal.

The money thus collected is then invested in capital market

instruments such as shares, debentures and other securities.

The 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.

The flow chart below describes broadly the working of a mutual

fund:


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The origin of mutual fund industry in India is with the introductionof the concept of mutual fund by UTI in the year 1963.

Though the growth was slow, but it accelerated from the year

1987 when non-UTI players entered the industry.

In the past decade, Indian mutual fund industry had seen a

dramatic improvements, both quality wise as well as quantity

wise.

The main reason of its poor growth is that the mutual fund

industry in India is new in the country.

Large sections ofIndian Investors are yet to be intellectuated withthe concept. Hence, it is the prime responsibility of all mutual fund

companies, to market the product correctly with its latest

developments of selling.


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Second PhaseSecond Phase -- 19871987--1993 (Entry of Public Sector Funds)1993 (Entry of Public Sector Funds)

1987-Marked entry of Public Sector Banks. LIC and GIC

June 87-S.B.I was first Non-Unit Trust ofIndia institution to set-upthe Mutual Fund

1989-LIC Entered the Mutual Fund Space

1990- GIC Entered the Mutual Fund Markets

The end of 1993 marked Rs.47,004 as assets under management.


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Third PhaseThird Phase -- 19931993--2003 (Entry of Private Sector Funds)2003 (Entry of Private Sector Funds)

1993-Entry of Private Players SEBILaid Guidelines for all players

except Unit Trust ofIndia

1996- SEBI(Mutual Fund) Regulations passed.

2003- 33 Mutual Fund Players were in the Indian Market

2003- AUM 1,21,805 cr.


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Fourth Phase - Since February 2003

Unit Trust ofIndia Bi-fircated into two entities

UTI-Mutual Fund, sponsored by SBI, PNB, BOB and LIC

UTI-Mutual Fund governed by SEBI Regulations 1996

Unit Trust ofIndia only covers US-64

-: Mutual Funds Organization :-


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Liquidity: It's easy to get your money out of a mutual fund. Write a

check, make a call, and you've got the cash.

Convenience: You can usually buy mutual fund shares by mail,

phone, or over the Internet.

Low cost: Mutual fund expenses are often no more than 1.5

percent of your investment. Expenses for Index Funds are less thanthat, because index funds are not actively managed. Instead, they

automatically buy Stock in companies that are listed on a specific

index

Transparency

Flexibility

Choice of schemes

Tax Benefits

Well regulated


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By Structure

Open - Ended Schemes

Close - Ended Schemes

Interval SchemesBy Investment Objective

Growth Schemes

Income Schemes

Balanced Schemes

Money Market SchemesOther Schemes

Tax Saving Schemes

Sector Specific Schemes

Wide variety of Mutual Fund Schemes exist to cater to the needs such as

financial position, risk tolerance and return expectations etc. The table belowgives an overview into the existing types of schemes in the Industry.


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(NAV) represents a fund's per share market value. This is the price atwhich investors buy ("bid price") fund shares from a fund company and

sell them ("redemption price") to a fund company.

It is derived by dividing the total value of all the cash and securities

in a fund's portfolio, less any liabilities, by the number of sharesoutstanding.

An NAV computation is undertaken once at the end of each trading

day based on the closing market prices of the portfolio's securities.


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For example, if a fund has assets of $50 million and liabilities of

$10 million, it would have a NAV of $40 million.

This number is important to investors, because it is from NAV that

the price per unit of a fund is calculated.

By dividing the NAV of a fund by the number of outstanding units,

you are left with the price per unit. In our example, if the fund

had 4 million shares outstanding, the price-per-share value wouldbe $40 million divided by 4 million, which equals $10.


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Top ten mutual fund companies India

HDFC Mutual Fund

Tata Mutual Fund

SBI Mutual Fund Reliance Mutual Fund

DSP BlackRock Mutual Fund

Kotak Mutual Fund

Principal Mutual Fund Sundaram BNP Paribas Mutual Fund

Franklin Templeton Mutual Fund

Birla Sun Life Mutual Fund


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Set realistic targets based on appropriate benchmarks.

Decide on an appropriate investment philosophy i.e whether to

capitalize on economic cycles, or to focus on growth sectors or on

finding value stocks.

Avoid over diversification. Although diversification is major

strength is a major strength of mutual fund.


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Fund managers keep churning their portfolio depending upon

their outlook for the market, sector or company.

Portfolio revision (depending on changing market outlook and

evolving trends).

This churning can be done very frequently or may be done after

sufficient time gaps.

Portfolio revision is done if the fund managers feel in coming

months there will be changes in economic scenario or world

global market.


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THANK YOU

Documents

SAPM Mutual Funds Final