Economic Risk Factor Update: April 2024 [SlideShare]
Mutual funds
1. WHAT IS A MUTUAL FUND? A Mutual Fund is a trust that pools the savings of a number of investors who share a common investment objective IN turn buy assets
5. TYPES OF MUTUAL FUNDS Type of Mutual Fund Schemes Structure Investment Objective Special Schemes Open Ended Funds Close Ended Funds Interval Funds Growth Funds Income Funds Balanced Funds Money Market Funds Industry Specific Schemes Index Schemes Sectoral Schemes
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9. INVESTMENT OPTIONS High No price risk 9% - 10% Over 1 year Serial High Low Credit 9% - 10.5% 1 month – 12 months Bond High No 8% to 9.5% Overnight to 1 month Liquid Mutual Funds High Price Risk 7% - 9% <12 months T-Bills Routed thro’ PD’s Low 6.5% - 9% Overnight Call (thro’ PD’s) No secondary mkt. Medium 9% - 11% <180 days ICD’s Possible by breaking FD at cost Low 6% - 12% 7 days to 1 yr. Bank Deposits Liquidity Risk Pre-Tax Returns Tenure Instrument
32. MUTUAL FUND OPEARATION PRODUCT DESIGN PRODUCT MARKETING FUND MANAGEMENT OUT SOURCING INVESTOR’S SERVICE THE CHAIN OF OPERATION FAILED IN ALL CHAINS OF OPERATIONS
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Editor's Notes
ABROAD MUTUAL FUND IS A VERY INNOVATIVE INDUSTRY DID LITTLE TO INNOVATE WITH INNOVATION 70% SCHEMES CLOSE ENDED WITH POOR RETURNS UTI STILL CONTINUES WITH PLAIN VANILLA SCHEMES INNOVATION ONLY IN OPEN END SCHEMES TWO METHODS OF DESIGN - INVESTMENT TAGET BASED( WE HAVE USED SO FAR) - NEED BASED(E.G. CHILDREN GIFT GROWTH SCHEME OF UTI) TARGET BASED FUNDS HAVE FAILED MISERABLY DUE TO POOR FUND MGT. TIME TO DESIGN SECTOR, LOCATION AND THEME BASED MUTUAL FUNDS
ABROAD MUTUAL FUND IS A VERY INNOVATIVE INDUSTRY DID LITTLE TO INNOVATE WITH INNOVATION 70% SCHEMES CLOSE ENDED WITH POOR RETURNS UTI STILL CONTINUES WITH PLAIN VANILLA SCHEMES INNOVATION ONLY IN OPEN END SCHEMES TWO METHODS OF DESIGN - INVESTMENT TAGET BASED( WE HAVE USED SO FAR) - NEED BASED(E.G. CHILDREN GIFT GROWTH SCHEME OF UTI) TARGET BASED FUNDS HAVE FAILED MISERABLY DUE TO POOR FUND MGT. TIME TO DESIGN SECTOR, LOCATION AND THEME BASED MUTUAL FUNDS
ABROAD MUTUAL FUND IS A VERY INNOVATIVE INDUSTRY DID LITTLE TO INNOVATE WITH INNOVATION 70% SCHEMES CLOSE ENDED WITH POOR RETURNS UTI STILL CONTINUES WITH PLAIN VANILLA SCHEMES INNOVATION ONLY IN OPEN END SCHEMES TWO METHODS OF DESIGN - INVESTMENT TAGET BASED( WE HAVE USED SO FAR) - NEED BASED(E.G. CHILDREN GIFT GROWTH SCHEME OF UTI) TARGET BASED FUNDS HAVE FAILED MISERABLY DUE TO POOR FUND MGT. TIME TO DESIGN SECTOR, LOCATION AND THEME BASED MUTUAL FUNDS
ABROAD MUTUAL FUND IS A VERY INNOVATIVE INDUSTRY DID LITTLE TO INNOVATE WITH INNOVATION 70% SCHEMES CLOSE ENDED WITH POOR RETURNS UTI STILL CONTINUES WITH PLAIN VANILLA SCHEMES INNOVATION ONLY IN OPEN END SCHEMES TWO METHODS OF DESIGN - INVESTMENT TAGET BASED( WE HAVE USED SO FAR) - NEED BASED(E.G. CHILDREN GIFT GROWTH SCHEME OF UTI) TARGET BASED FUNDS HAVE FAILED MISERABLY DUE TO POOR FUND MGT. TIME TO DESIGN SECTOR, LOCATION AND THEME BASED MUTUAL FUNDS
ABROAD MUTUAL FUND IS A VERY INNOVATIVE INDUSTRY DID LITTLE TO INNOVATE WITH INNOVATION 70% SCHEMES CLOSE ENDED WITH POOR RETURNS UTI STILL CONTINUES WITH PLAIN VANILLA SCHEMES INNOVATION ONLY IN OPEN END SCHEMES TWO METHODS OF DESIGN - INVESTMENT TAGET BASED( WE HAVE USED SO FAR) - NEED BASED(E.G. CHILDREN GIFT GROWTH SCHEME OF UTI) TARGET BASED FUNDS HAVE FAILED MISERABLY DUE TO POOR FUND MGT. TIME TO DESIGN SECTOR, LOCATION AND THEME BASED MUTUAL FUNDS
