Covering brief details of Mutual Fund and its functioning...

1. Presented By: Amar Ranu Presentation on: Mutual Funds

2. Retail Investors Investment Objective Risk Management NAV Factsheets Return AUMs Portfolio Portfolio Professional Management Asset Allocation Tax Saving Growth Fund Manager Redemption Open Ended Investment Dividend Close Ended Exit Load Entry Load Sale Price Repurchase Price

3. Mutual Fund Snapshot….

6. Contents Regulatory Aspects Classification of Mutual Fund Schemes Risk-return structure of schemes History of Mutual Funds in India Portfolio Management Process Mutual Fund Comparison Investments Checklists Risk Management AUM movements in India Expenses Tracking Mutual Funds Warning Signals Penetration of Mutual Funds What Mutual Funds are not? Flow Cycle of a Mutual Fund Organizational Structure of a Mutual Fund Balance sheet of a Bank and Mutual Fund Diff. b/w MF and Direct Investment

7. Flow Cycle of a Mutual Fund Organizational Structure of a Mutual Fund Balance sheet of a Bank and Mutual Fund Diff. b/w MF and Direct Investment Portfolio Management Process Mutual Fund Comparison Investments Checklists Risk Management AUM movements in India Expenses Tracking Mutual Funds Warning Signals Penetration of Mutual Funds What Mutual Funds are not? Flow Cycle of a Mutual Fund Regulatory Aspects Classification of Mutual Fund Schemes Risk-return structure of schemes History of Mutual Funds in India

8. Flow Cycle of a Mutual Fund

9. Flow Cycle of a Mutual Fund Mutual Funds defined….a flow cycle

11. Flow Cycle of a Mutual Fund Organizational Structure of a Mutual Fund Balance sheet of a Bank and Mutual Fund Diff. b/w MF and Direct Investment Portfolio Management Process Mutual Fund Comparison Investments Checklists Risk Management AUM movements in India Expenses Tracking Mutual Funds Warning Signals Penetration of Mutual Funds What Mutual Funds are not? Diff. b/w MF and Direct Investment Regulatory Aspects Classification of Mutual Fund Schemes Risk-return structure of schemes History of Mutual Funds in India

13. Flow Cycle of a Mutual Fund Organizational Structure of a Mutual Fund Balance sheet of a Bank and Mutual Fund Diff. b/w MF and Direct Investment Portfolio Management Process Mutual Fund Comparison Investments Checklists Risk Management AUM movements in India Expenses Tracking Mutual Funds Warning Signals Penetration of Mutual Funds What Mutual Funds are not? Balance sheet of a Bank and Mutual Fund Regulatory Aspects Classification of Mutual Fund Schemes Risk-return structure of schemes History of Mutual Funds in India

14. Difference between Bank and Mutual Fund Difference b/w Balance Sheets of MF and Bank Mutual Fund Balance Sheet Liabilities Assets Bank Balance Sheet Liabilities Assets

16. Flow Cycle of a Mutual Fund Organizational Structure of a Mutual Fund Balance sheet of a Bank and Mutual Fund Diff. b/w MF and Direct Investment Portfolio Management Process Mutual Fund Comparison Investments Checklists Risk Management AUM movements in India Expenses Tracking Mutual Funds Warning Signals Penetration of Mutual Funds What Mutual Funds are not? Organizational Structure of Mutual Fund Regulatory Aspects Classification of Mutual Fund Schemes Risk-return structure of schemes History of Mutual Funds in India

17. Organizational Structure of Mutual Fund

21. Flow Cycle of a Mutual Fund Organizational Structure of a Mutual Fund Balance sheet of a Bank and Mutual Fund Diff. b/w MF and Direct Investment Portfolio Management Process Mutual Fund Comparison Investments Checklists Risk Management Regulatory Aspects Classification of Mutual Fund Schemes Risk-return structure of schemes History of Mutual Funds in India AUM movements in India Expenses Tracking Mutual Funds Warning Signals Penetration of Mutual Funds What Mutual Funds are not? Classification of Mutual Fund Schemes

22. Each category is classified into more sub-categories. Classification of Mutual Fund Schemes AMFI Classification of MF Schemes Fund schemes Portfolio objectives Growth & Income High Risk & High Return Balanced Moderate Risk & Return Liquid & Money Market Fixed Return Gilt Zero Risk ELSS Tax Saving Fund of funds Additional diversification ETFs Market Driven

24. Flow Cycle of a Mutual Fund Organizational Structure of a Mutual Fund Balance sheet of a Bank and Mutual Fund Diff. b/w MF and Direct Investment Portfolio Management Process Mutual Fund Comparison Investments Checklists Risk Management Regulatory Aspects Classification of Mutual Fund Schemes Risk-return structure of schemes History of Mutual Funds in India AUM movements in India Expenses Tracking Mutual Funds Warning Signals Penetration of Mutual Funds What Mutual Funds are not? Risk-return structure of schemes

25. Risk –Return of different schemes Risk-return structure of schemes

26. Flow Cycle of a Mutual Fund Organizational Structure of a Mutual Fund Balance sheet of a Bank and Mutual Fund Diff. b/w MF and Direct Investment Portfolio Management Process Mutual Fund Comparison Investments Checklists Risk Management Regulatory Aspects Classification of Mutual Fund Schemes Risk-return structure of schemes History of Mutual Funds in India AUM movements in India Expenses Tracking Mutual Funds Warning Signals Penetration of Mutual Funds What Mutual Funds are not? History of Mutual Funds in India

27. 1964 1987 1993 2009  ? Phases of Mutual Fund Industry in India History of Mutual Funds in India

28. Flow Cycle of a Mutual Fund Organizational Structure of a Mutual Fund Balance sheet of a Bank and Mutual Fund Diff. b/w MF and Direct Investment Portfolio Management Process Mutual Fund Comparison Investments Checklists Risk Management Regulatory Aspects Classification of Mutual Fund Schemes Risk-return structure of schemes History of Mutual Funds in India AUM movements in India Expenses Tracking Mutual Funds Warning Signals Penetration of Mutual Funds What Mutual Funds are not? Regulatory Aspects

30. Flow Cycle of a Mutual Fund Organizational Structure of a Mutual Fund Balance sheet of a Bank and Mutual Fund Diff. b/w MF and Direct Investment Portfolio Management Process Mutual Fund Comparison Investments Checklists Risk Management Regulatory Aspects Classification of Mutual Fund Schemes Risk-return structure of schemes History of Mutual Funds in India AUM movements in India Expenses Tracking Mutual Funds Warning Signals Penetration of Mutual Funds What Mutual Funds are not? Portfolio Management Process

31. Portfolio Management Process Portfolio Management Process

32. Flow Cycle of a Mutual Fund Organizational Structure of a Mutual Fund Balance sheet of a Bank and Mutual Fund Diff. b/w MF and Direct Investment Portfolio Management Process Mutual Fund Comparison Investments Checklists Risk Management Regulatory Aspects Classification of Mutual Fund Schemes Risk-return structure of schemes History of Mutual Funds in India AUM movements in India Expenses Tracking Mutual Funds Warning Signals Penetration of Mutual Funds What Mutual Funds are not? Risk Management

34. Flow Cycle of a Mutual Fund Organizational Structure of a Mutual Fund Balance sheet of a Bank and Mutual Fund Diff. b/w MF and Direct Investment Portfolio Management Process Mutual Fund Comparison Investments Checklists Risk Management Regulatory Aspects Classification of Mutual Fund Schemes Risk-return structure of schemes History of Mutual Funds in India AUM movements in India Expenses Tracking Mutual Funds Warning Signals Penetration of Mutual Funds What Mutual Funds are not? Investment Checklists

37. Flow Cycle of a Mutual Fund Organizational Structure of a Mutual Fund Balance sheet of a Bank and Mutual Fund Diff. b/w MF and Direct Investment Portfolio Management Process Mutual Fund Comparison Investments Checklists Risk Management Regulatory Aspects Classification of Mutual Fund Schemes Risk-return structure of schemes History of Mutual Funds in India AUM movements in India Expenses Tracking Mutual Funds Warning Signals Penetration of Mutual Funds What Mutual Funds are not? Mutual Fund Comparison

39. Flow Cycle of a Mutual Fund Organizational Structure of a Mutual Fund Balance sheet of a Bank and Mutual Fund Diff. b/w MF and Direct Investment Portfolio Management Process Mutual Fund Comparison Investments Checklists Risk Management Regulatory Aspects Classification of Mutual Fund Schemes Risk-return structure of schemes History of Mutual Funds in India AUM movements in India Expenses Tracking Mutual Funds Warning Signals Penetration of Mutual Funds What Mutual Funds are not? Expenses

41. Flow Cycle of a Mutual Fund Organizational Structure of a Mutual Fund Balance sheet of a Bank and Mutual Fund Diff. b/w MF and Direct Investment Portfolio Management Process Mutual Fund Comparison Investments Checklists Risk Management Regulatory Aspects Classification of Mutual Fund Schemes Risk-return structure of schemes History of Mutual Funds in India AUM movements in India Expenses Tracking Mutual Funds Warning Signals Penetration of Mutual Funds What Mutual Funds are not? Tracking Mutual Funds

43. Flow Cycle of a Mutual Fund Organizational Structure of a Mutual Fund Balance sheet of a Bank and Mutual Fund Diff. b/w MF and Direct Investment Portfolio Management Process Mutual Fund Comparison Investments Checklists Risk Management Regulatory Aspects Classification of Mutual Fund Schemes Risk-return structure of schemes History of Mutual Funds in India AUM movements in India Expenses Tracking Mutual Funds Warning Signals Penetration of Mutual Funds What Mutual Funds are not? Warning Signals

45. Flow Cycle of a Mutual Fund Organizational Structure of a Mutual Fund Balance sheet of a Bank and Mutual Fund Diff. b/w MF and Direct Investment Portfolio Management Process Mutual Fund Comparison Investments Checklists Risk Management Regulatory Aspects Classification of Mutual Fund Schemes Risk-return structure of schemes History of Mutual Funds in India AUM movements in India Expenses Tracking Mutual Funds Warning Signals Penetration of Mutual Funds What Mutual Funds are not? AUM movements in India

47. Indian Asset Management Industry - Growth in Assets Total Assets Under Management as on March 2009 – Rs 493286 crores Total No. of players - 36 AUM movements in India

48. Flow Cycle of a Mutual Fund Organizational Structure of a Mutual Fund Balance sheet of a Bank and Mutual Fund Diff. b/w MF and Direct Investment Portfolio Management Process Mutual Fund Comparison Investments Checklists Risk Management Regulatory Aspects Classification of Mutual Fund Schemes Risk-return structure of schemes History of Mutual Funds in India AUM movements in India Expenses Tracking Mutual Funds Warning Signals Penetration of Mutual Funds What Mutual Funds are not? Penetration of Mutual Funds

49. Penetration vis-à-vis Other Financial Products Note: Penetration of Mutual Funds is still low as compared to Banks and Insurance Companies. Penetration of Mutual Funds

50. Flow Cycle of a Mutual Fund Organizational Structure of a Mutual Fund Balance sheet of a Bank and Mutual Fund Diff. b/w MF and Direct Investment Portfolio Management Process Mutual Fund Comparison Investments Checklists Risk Management Regulatory Aspects Classification of Mutual Fund Schemes Risk-return structure of schemes History of Mutual Funds in India AUM movements in India Expenses Tracking Mutual Funds Warning Signals Penetration of Mutual Funds What Mutual Funds are not? What Mutual Funds are not?

52. Thank You