SAPM Mutual Funds Final
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Transcript of 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