Ppt on mutual fund

1. A SMALL PRESENTATION
ON,
MUTUAL FUND
PRESENTED BY,
VIDYADHARA.G

2. LEARNING OUTCOMES
What is mutual fund.
Concept of Mutual funds.
TYPES OF MUTUAL FUNDs
Objectives
Advantages
disadvantages
Buying A mutual fund.
Services offered by mutual funds

3. What is…
MUTUAL
FUND

4. MUTUAL FUND
A mutual fund is a professionally
managed type of collective
investment scheme that pools
money from many investors to buy
stocks, bonds, short-term money
market instruments, and/or other
securities.
Blah..
Bla bla…

5. Concept of Mutual funds
A Mutual Fund is a trust that pools the savings of a number
of investors who share a common financial goal.
The income earned through these investments and the
capital appreciation realized are shared by its unit holders in
proportion to the number of units owned by them.
 Thus a Mutual Fund is the most suitable investment for the
common man as it offers an opportunity to invest in
diversified professionally managed basket of securities at a
relatively low cost.

6. Cycle of Mutual Fund
.

7. TYPES OF MUTUAL FUNDs
Mutual
Funds
By Maturity
Period
Open
ended
Close
ended
By Investment
Objective
Equity
Balance
fund
Income
Gilt
fund
Money
market
Index
fund

8. Maturity period
A)Open ended
 Subscription and repurchase on continuous
basis .
Does not have fixed maturity period
B)Close ended
Stipulated maturity period

9. Investment objective
Equity
• To provide capital appreciation over the medium to long-term
• High risk
Income
• Regular and steady income to investors.
• Bonds, corporate debentures, Government securities and
money market instruments.

10. Investment objective
Balance fund
• Provide both growth and regular income
• Equities and fixed income securities
Money market
• To provide easy liquidity, preservation of capital and
moderate income
• Treasury bills, commercial paper and government
securities, etc.

11. Investment objective`
Gilt fund
• In government securities.
• No default risk.
Index fund
• Rise or fall in accordance with the rise or fall in the
index

12. Objectives
Money market Mutual Funds
Asset Allocation Funds
Stock Mutual Funds
Bond Funds

13. advantages
Instant Diversification
Level the playing field between professional
and individual investors
Share administrative expenses
Liquidity
Minimal transaction costs
Convenience

14. disadvantages
Lower than Market Performance
Costs

15. Services offered by mutual funds
Automatic investments and withdrawal plans
Automatic re-investment of interest, dividends
and capital gains
Wiring and funds express options
Phone or internet switching
Check writing
Book keeping and help with taxes

16. Buying A mutual fund
STEP 1 – Determine risk preferences
STEP 2 – Determine asset allocation
STEP 3 – Identify family of funds that meet
your objective
STEP 4 – Evaluate the funds