Download
slide1 n.
Skip this Video
Loading SlideShow in 5 Seconds..
What is Mutual fund and Types of Mutual fund? PowerPoint Presentation
Download Presentation
What is Mutual fund and Types of Mutual fund?

What is Mutual fund and Types of Mutual fund?

338 Views Download Presentation
Download Presentation

What is Mutual fund and Types of Mutual fund?

- - - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

  1. All About Mutual Fund Complete Guide

  2. What is Mutual Fund?  What- It is a legal common pool of money  Money from- Investors bring the money to invest  Investment in- Investment can be in Shares, Bonds, Real estate etc as per wish of investor  Units- Investors get units of mutual fund , for their investment.  Who Does Investment- Expert Fund Manager does all investments  Who Appoints Fund Manager- Investors  What About Profits from Investment- All profits from investments are given back to investors

  3. Process of Mutual Fund Investors Returns, post deducting expenses, are given to investors Pool Money and Create a Fund , called Mutual Fund Mutual Fund Returns Fund Appoints a Fund Manager and Invest money Investment pool generates return Investment

  4. Advantages of Mutual Fund  Stress -Managing direct investments in stocks or bonds can be really stressful as the markets are too volatile and it is very difficult for a layman investor to be patient with the swings in the prices of shares, etc  Professional Expert Management- No need for investors to get involved in the fund management on day to day basis. Fund manager manages the complete money  Diversification- Since mutual fund is pool of investment made by a group of investors, an expert fund manager can invest the money in a large choice of shares/ bonds or debentures etc. which reduces risk from one single asset.  Small money can be invested - Often shares or bonds of large corporations, etc trades at a very high base rate and small investor can’t invest into it due to the low investment amount. But this becomes possible for a fund manager in case of a mutual fund  Tax Benefits- In equity mutual funds, all returns are tax free if investments are held for more than 1 year. In ELSS (Equity Linked Saving Schemes), one can save taxes under section 80C of income tax act along with benefit of tax free returns.  Liquidity- Investment in Mutual funds are very liquid. Open ended mutual funds can be bought and sold any time. Small investor can plan his investments as per his need in mutual funds. Click Here for Detail

  5. Get Right Portfolio Allocation FREE Start Now Continue reading…

  6. Net Asset Value- NAV NAV is the market value of each unit of mutual fund scheme , after deducting all charges and liabilities. NAV or Net Asset Value of a Mutual Fund is based on the market price of the securities held in the portfolio. It can calculated with following formula- Market price of all investments +All other assets such as cash – Expenses- All liabilities ______________________________________________________________________ Total number of units outstanding for the scheme

  7. Units of Mutual fund  Like Shares, Units are part of the ownership of a mutual fund scheme. Unit holders are investors of the fund. Total investment of a mutual fund scheme is divided into small units of a particular amount each  Unit holders get voting rights and participate in the profits earned by Mutual fund , on the basis of proportion of units allotted to them .

  8. Types of Mutual Funds

  9. Tenor of Mutual Fund Open Ended Mutual Fund Close Ended Mutual Fund In this scheme the investor , once invested will not be able to redeem any time as per his or her wish. Mutual Fund will have a lock-in period before which Investor cannot redeem from the scheme. In this scheme the investor can invest ( Buy) and redeem (Sell) mutual fund scheme at any time. There is no lock in period of investment

  10. Types of Mutual Fund Mutual Fund Specialized Funds Equity Fund Debt Fund Hybrid Fund Liquid Fund Commodity Fund Diversified Fund Income Fund Mid Cap fund ETF FMP Small Cap Fund Funds of Funds Short Term Funds Balanced Fund Sect oral Fund Arbitrage Funds Monthly Income Plan Gilt Fund Capital Tax Saving Fund Protection Funds Dynamic Fund Index Fund

  11. Plan your Life Financial Goals FREE Start Now Continue reading…

  12. Major Categories of Mutual Fund Mutual funds With primary objective to invest in Shares and Stocks are called Equity Funds. Equity Funds Debt Funds invests in Govt. Bonds or securities, Corporate bonds & Other debt securities Debt Funds Funds with mix of Debt and Equity are hybrid funds. Their proportion change as per opportunities in the market. Hybrid Funds Debt funds investing only in very short term securities like certificate of deposits, treasury bills, commercial papers and term deposits. Liquid Funds Mutual funds investing in commodities like Gold, silver etc are commodity funds Commodity Funds

  13. Types Equity Fund Diversified Equity Funds Mid Cap Equity Funds Small Cap Equity Funds Sectoral Equity Funds Tax Saving Equity Funds Index fund Equity Funds Fund investing in equities concentration on a particular sector or size of company. It can invest share as per wish of fund manager Equity investing in share of mid sized listed company. sized company can be valuation between Rs 500 cr- Rs 2000 cr fund Equity investing shares of small sized company. sized company can be valuation Rs 500 cr funds Funds investing in shares particular industry or sector. Example, Pharmacy invest only shares of pharmaceutical companies These diversified equity funds, investor gets tax benefit u/s 80C of income tax act. These are called Equity saving schemes) are Equity which performance specific market index like BSE Sensex, NSE nifty. These are passive funds and invest with right proportion to shares Index. funds match without in of a where of Mid listed Small stock of funds or in any of also ELSS( Linked below in

  14. Types of debt funds Debt Funds invests in Govt. Bonds or securities, Corporate bonds & Other debt securities with long term maturity beyond 3 years. The offer long term returns and tracks returns of bonds and Govt. securities Income/ Bond Funds Close ended debt funds, with debt securities which have maturity similar to the closure of the fund. Post closure Mutual fund give back all money to investor. These fund generally offer an expected returns to investors FMP Funds Debt funds with less risk, invest in Debt securities, having maturity up to 1 to 3 years . These are generally preferred for short to medium term investments . Short term Funds Mutual funds investing in all kind of Government securities. Primarily these funds invest in long term Govt. Securities with small component invested in short term securities. Gilt Funds

  15. Types of Hybrid Fund Balanced Funds Monthly income plan Dynamic Fund/Asset Allocation Funds Balanced Funds Invest in mix of Shares and Debt securities higher return minimum capital Generally least 65% funds in equity to get tax benefits of equity funds Objective is to reward investors with regular income & moderate capital appreciation along with minimum risk of capital, though don’t guarantee any return. invest 80% of funds in debt securities. Funds with variable asset strategy flexibility from Equity to Debt or vice-a-versa , any time depending outlook of the market. allocation that to switch for and of has risk erosion. invest of at on the total Generally

  16. Exchange Traded Funds( ETF) Exchange traded funds are index funds, which tracks the composition and performance of Equity, Commodity, or Debt indices, like BSE Sensex or NSE nifty . They are tradable on stock exchange like any other shares. About ETFs unlike other mutual funds, are traded on stock exchange and tracks real time composition and performance of equity indices. One can buy and sell them any time during market hours of stock exchange and their price change as per index Tradable 1) Equity ETF- Invest in equity based Indices 2) Gold ETF- Invest in Gold as an asset class 3) Debt ETF- Invest in Debt indices Types of ETFs a) b) Goldman Sachs Gold BeEs- This ETF tracks Gold Price on real time Other are Reliance banking ETFs, Motilal Midcap ETF Goldman Sachs Nifty BeEs- This ETF tracks NSE nifty index Popular ETFs

  17. Funds of Funds ( FOF) Funds of funds can invest across different mutual fund schemes available in market. A FOF can divide money, freely in Diversified equity fund, Small cap fund , Mid cap fund or debt funds, as per mandate of the fund. About Investor who wishes to invest in multiple mutual funds with a small amount can invest in FOF .Fund manager can switch between debt funds & equity funds as per opportunity in the markets Benefit a) b) Quantum equity fund of funds Kotak Asset allocator fund Popular FOFs

  18. Capital protection oriented funds Close ended funds , offering near capital protection to investors, which invest maximum funds in Fixed income securities.Small portion is invested in shares or derivatives to give extra returns. Generally 85% goes in debt and 15% in equity About a) Maturity is fixed and investor looking for a investment for time period can choose to invest in this. b) Offers near capital guarantee and also chance to get higher than FD interest return Benefit • • Capital Protection oriented funds are close ended However they are listed on stock exchanges Liquidity

  19. Investing Options Growth Scheme Dividend Option In Dividend scheme , all profits generated from buying and selling of the investments in the fund, gets accumulated and then at the wish of fund manager, gets distributed to all investors. There are two versions of this option- In Growth scheme , all profits generated from buying and selling of the investments in the fund, gets accumulated. Profits get added to NAV of the mutual fund and investor looking to en-cash the profits can sell mutual fund units . a) Dividend payout Option- Here dividends are actually paid to investors. Dividend Reinvestment option- Here dividends distributed are not handed to the investors, but invested back to the fund and investor is allotted more units of the fund for the dividend amount. This is best scheme , for investor looking for capital and profit accumulation over long period as profits are not distributed to investors. b)

  20. Right Approach 1 2 3 4 5 Financial Goals Knowing- Risk Profiling Knowing- Right Portfolio Buy/ Sell Regular Monitoring Investment Products right as per risk profile With least Brokerage & Commission Of Portfolio and Markets All Financial Goals of the life Risk Capacity- How much Risk you can afford to take The amount required to meet them Inflation adjusted Portfolio efficient which is tax With Nil hiddencosts Rebalance when required Investments Risk Attitude- How much Risk you want to take Know right Investment Portfolio for your Profile Start Now

  21. Our Offer Advisory Fees Rs. 365 Per Annum Customized advise only for you Customized , unbiased Wealth Management @Rs. 1 per day Regular Review and Rebalancing Unlimited Long Term Investment Advise Tax efficient portfolio design Start Now No Minimum investment Substantial Savings in Commission ( Optional)

  22. Complete Investment Planning Wealth Creation Advice Monthly Savings Advice Tax Saving Investments In case you want to invest Lump Sum In case you want to invest On Monthly basis In case you want to Make Tax Saving Investments Portfolio Restructuring Advice Online Transaction Goal Planning If you want to Restructure your portfolio In case you want to Plan your Financial Goals In case you want to Buy and Sell any product

  23. Why AdviseSure Our Simple and easy Personal Finance Tools & self-help process, ensures that you take Better control of your entire Finance in 7 Minutes , to your satisfaction. Simple & Easy Paperless Process Invest and Manage Online , on a Single Click. No need to Fill boring Physical forms and storing statements. Manage Your Finance with easy and simple back office.. Multiproduct We advice on almost all Financial Products except banking accounts. You can transact in all products through us. Our technology will ensure superior Experience We don't Push Products to our Customers Like Agents or Brokers, for commissions or brokerages. You can continue buying and selling with your current Broker or Agent. However you can also transact through us at substantial low Cost. Cost Effective Online Access You can manage your account from anywhere through multiple support points

  24. AdviseSure Investment Advisors is India’s first only Advise platform where we help individual, managing personal finance. AdviseSure Investment Advisors is part of AdviseSure Ventures Private limited. AdviseSure Investment Advisors is a SEBI registered Investment Advisor and its associate/group company empanelled with AMFI as a distributor .You can execute transactions with your banker, stock broker or agent/ financial intermediary . We also offer transaction services through various associations, at a substantially lesser cost to our clients as compared to other financial intermediaries, so that you start your financial plan with AdviseSure Investment Advisors is a safe and secure platform. Our recommendations rely on historical data. Historical/ past performance is not a guarantee of future returns. The information and views presented here are prepared by AdviseSure Investment Advisors. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. This document is solely for the personal information of the recipient. The investments discussed or recommended here may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned here, investors may please note that neither AdviseSure Investment Advisors nor any person connected with any associated companies of AdviseSure Investment Advisors , accepts any liability arising from the use of this information and views mentioned here. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. AdviseSure Investment Advisors CORPORATE OFFICE : Level 8, Vibgyor Towers, G Block, C62,Bandra Kurla Complex, Mumbai 400 098, India ------------- Website : www.advisesure.com Email: care@advisesure.com