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Mutual Fund Basics PowerPoint Presentation
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Mutual Fund Basics

Mutual Fund Basics

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Mutual Fund Basics

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Presentation Transcript

  1. Mutual Fund Basics

  2. What Does Mutual Fund Mean? • An investment vehicle that is made up of a pool of funds collected from many investors. • Mutual funds are operated by money mangers • Money managers invest the fund's capital and attempt to produce capital gains and income for the fund's investors. • A mutual fund's portfolio is created • The mutual fund portfolio maintained to match the investment objectives stated in its prospectus.

  3. How can Mutual Fund be Financially Beneficial • A fund pays out nearly all of the income it receives over the year to fund owners in the form of a distribution. • If the fund sells securities that have increased in price, the fund has a capital gain. • If fund holdings increase in price but are not sold by the fund manager, the fund's shares increase in price

  4. Advantages of Mutual Funds • Smart investment • Choice of risk • Options on liquidity • Tax benefits • More choice • Invest in instalments or lump sums • No big investment required • Well regulated • Low cost of asset management • Professional management

  5. Disadvantages of Mutual Funds • Professional Management • Costs • Dilution • Taxes

  6. Types of Mutual Funds • Money Market Funds • Bond/Income Funds • Balanced Funds • Equity Funds • Global/International Funds • Specialty Funds • Sector funds • Regional funds • Socially-responsible funds • Index Funds

  7. Key Things to Know Before Investing in Mutual Funds • Net asset value (NAV) • Finding Funds • Identifying Goals and Risk Tolerance • Evaluate Performance of A Mutual Fund

  8. Direct vs. Regular Mutual Funds • Direct scheme- Direct mutual fund gives no commission to the broker or distributor from the investment of the shareholder • Regular scheme- The regular mutual fund offers commissions to the advisor, distributor, or broker from the investment amount. 

  9. Thank You!!!