This is my presentation on Mutual Funds which contains a brief overview to Mutual Funds Industry in India. This PPT also contains some realities behind mutual fund industry. i am uploading this with a hope that this could help someone. Thanks

1. Seminar On Mutual Funds
Presented By-: Raghav Missra
MBA (FYIC)7Th Sem
2014UCC 1635
Presented To:- Mrs. Tejinder kaur

2. Video

3. Preface :-
Meaning Of M.F.
History Of M.F.
Organization Of M.F.
Types Of M.F.
Advantages Of M.F.
Disadvantages Of M.F.
Mutual Funds Execution
Comparison B/W Bank And M.F. Investment
Selecting Financial Advisor
SIP
Asset Management Companies
Realities Behind Mutual Funds
Questionnaire On M.F.
Bibliography
Conclusion

4. Meaning Of Mutual Funds :-
A mutual fund is a professionally-managed investment scheme, usually run
by an asset management company that brings together a group of people and
invests their money in stocks, bonds and other securities.
All the mutual funds are registered with SEBI. They function within the
provisions of strict regulation created to protect the interests of the investor.
The biggest advantage of investing through a mutual fund is that it gives
small investors access to professionally-managed, diversified portfolios of
equities, bonds and other securities, which would be quite difficult to create
with a small amount of capital.

5. Working of
Mutual Funds
Investor
Pools
Money
With
Fund House
Securities
Returns
Fund
Manager
Invest In
Generates
Pass
Back To

6. Mutual Fund Organization :-
 Sponsor/Unit Holder :-
Sponsor is the person who establishes a mutual fund. The sponsor
is not responsible or liable for any loss resulting from the
operation of the mutual fund schemes.
 Trustee/Investment Manager :-
A trustee is a person/Company that holds and administers
investments for the benefit of a third party. The responsibility of
the trustee is to safeguard the interest of the unit holders and
ensure that the AMC functions in accordance with the SEBI
Regulations.

7.  Asset Management Company (AMC) :-
The trustee, as the investment manager of the mutual fund, appoints
the AMC. AMC is a company that invests its clients' pooled funds
into securities that match their declared financial objectives.
 SEBI/Custodian :-
To protect the interest of investors, SEBI formulates policies and
regulates the mutual funds. It notified regulations in 1993 (revised in
1996) and issues guidelines from time to time.
Mutual Fund Organization :- (Cont..)

9. History Of Mutual Funds In India:-
The M.F. industry in India started in 1963 with the formation of Unit Trust of
India, by Government and Reserve Bank of India.
First Phase - 1964-1987
UTI established in 1963 by an Act of Parliament. It was set up by the RBI and
functioned under the control of it. In 1978, Industrial Development Bank of
India (IDBI) took over the regulatory and administrative control of UTI in
place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the
end of 1988 UTI had Rs. 6,700 crores of assets under management.

10. Second Phase - 1987-1993 (Entry of Public Sector ) :-
1987 there was entry of public sector M.F. set up by public
sector banks and LIC. SBI Mutual Fund was the first non-
UTI Mutual Fund established in June 1987. In 1993, the
M.F. industry had assets under management of Rs 47,000 cr.
Third Phase - 1993-2003 (Entry of Private Sector ):-
In 1993, there was entry of private sector funds, giving
investors a wider choice of fund families. The Erstwhile
Kothari Pioneer was the first private sector mutual fund
registered in July 1993. As at the end of January 2003, there
were 33 mutual funds with total assets of Rs 1,21,805cr.
History Of Mutual Funds In India:- (cont..)

11. Fourth Phase - since February 2003:-
In Feb 2003, UTI Mutual Fund is sponsored by SBI, PNB, BOB and LIC. In March
2003 more than Rs 76,000 cr of assets under management and with the setting up
SEBI Mutual Fund Regulations, M.F. industry has entered its current phase of growth.

12. Types Of Mutual Funds

13. Why Mutual Funds(Advantages):-

14. Why Not Mutual Funds(Disadvantages):-

15. Mutual Funds Execution:-
How do I make investment in MF?
 Decide which scheme to invest in
 Consult a Financial advisor to choose a scheme which is in line
with your financial goal, risk appetite & time horizon
 Some schemes have lock in period; also check exit load
conditions
 PAN No & Bank details are a must to invest in MF
 Submit the application along with cheque at the nearest AMC office.
 Investment can be made online using the web services of the AMC.
 Sample application form & guide for filling up is available in the kit.
 On units allotment, you will receive a statement of accounts showing
units allotted, value and your personal details.

16. Mutual Funds Execution…2:-
How Do I Redeem My Investment?
 Decide which investment to redeem. Take the help of
Financial Advisor if you have units in several schemes.
 In case of schemes with lock in period, check whether the lock
in period is over.
 Submit the paper request at the nearest AMC office
 If there is a change in bank details, please take care to
mention the same in the request.
 You will receive the proceeds directly in your bank account or
by cheque.
 Statement of Accounts reflecting the units redeemed and
revised holding will be issued.
 Sample transaction slip is available in the kit for reference.

17. Mutual Funds Execution…3:-
Can I move my investment from one scheme to another?
 Yes, if both the schemes are from the same Fund
House. In MF terms, this is called switch.
 Transaction slip needs to be filled up and
submitted at the nearest AMC office.
 Transaction Slip should contain the source
scheme, target scheme and value proposed to be
transferred.
 If the source scheme has lock in conditions, it
should be satisfied.

18. Selecting a Financial Advisor
Understanding your needs:-
Risk Tolerance, Time Horizon, Return Expectations, etc.
Compensation:-
Charges that you have to pay. Quality advice cannot be free.
Have a meeting:-
Meeting the advisor and becoming comfortable

19. Questions To Be Asked To Financial Advisor:-
It is important to understand the experience and
expertise of the Financial Advisor
Kind of services and financial products available
with him.
Kind of approach the Advisor takes towards
Individual Financial Planning.
The charges associated with the
Advice/Financial Help.
It is essential to know all the costs and risks
associated with the investment.
•Experience?
•Services?
•Style?
•Compensation?
•Costs/Risks?

21. Systematic Investment Plan(SIP) :-
A Systematic Investment Plan or SIP is a smart mode for
investing money in mutual funds. SIP allows you to invest a
certain pre-determined amount at a regular interval (weekly,
monthly, quarterly, etc.). A SIP is a planned approach
towards investments and helps you develop the habit of
saving and building wealth for the future.
Discipline
Saving
Long-Term
Gains
Convenience
Flexibility

22. Working Of SIP:-
A SIP is a flexible and easy investment
plan. Your money is auto-debited from
your bank account and invested into a
specific mutual fund scheme. You are
allocated certain number of units based on
the ongoing market rate/NAV of the day.
Every time you invest money, additional
units of the scheme are purchased at the
market rate and added to your account.
Hence, units are bought at different rates
and investors benefit from Rupee-Cost
Averaging and the Power of
Compounding.

23.  Rupee-Cost Averaging :-
In diverse markets, people stress the best time to invest in the market. Rupee-
cost averaging helps you to opt out of the guessing game. Since you are a
regular investor, your money fetches more units when the price is low and
lesser when the price is high. During different period, it may allow you to
achieve a lower average cost per unit.
 Power of Compounding :-
The sooner you start investing, the more time your money has to grow.
Example:- If you started investing Rs. 10000 a month on your 40th birthday,
in 20 years time you would have put aside Rs. 24 lakhs. If that investment
grew by an average of 7% a year, it would be worth Rs. 52.4 lakhs when you
reach 60.
However, if you started investing 10 years earlier, your Rs. 10000 each
month would add up to Rs. 36 lakh over 30 years. Assuming the same
average annual growth of 7%, you would have Rs. 1.22 Cr on your 60th
birthday - more than double the amount you would have received if you
had started ten years later!

24. Asset Management Company(AMC):-
An AMC is a company that invests its clients' pooled funds into securities
that match their declared financial objectives. AMC provide investors with
more diversification and investing options than they would have by
themselves. AMCs manage mutual funds and these companies earn income
by charging service fees or commissions from their clients.
Thus, an AMC is registered under the Companies Act, 1956.
The AMC acts under the supervision and regulations of SEBI.

25. Asset Management Companies In India:-

26. Realities
Behind
Mutual
Funds

28. Realities Behind Mutual Funds:-
• As per the rules of SEBI Mutual Fund Manager cannot
hold cash with themselves. They have to invest it in the
market whether it is rising or falling.
• You have to redeem your mutual funds with your own
concern, mutual fund manager will never ask you to
redeem your investment from the market.
• Mutual fund companies and managers always say that this
is the right time to buy or get into the market whether
market is
(A) Stable (B) Increasing/Improving
(C) Decreasing/Unstable

29. Realities Behind Mutual Funds:- (Cont..)
• They will not ask you to redeem or not to invest at
particular time because all this investment is a business for
them they get their salaries and commissions out of your
investments.
• Mutual Funds are not going to make you Billionaire/
Millionaire in a day. You on your behalf must have to
understand the market and then understand the type of
investment to be made, only then it can be profitable to
you.

30. Things to be watched carefully before investing in M.F.
• Only you should have to choose your fund very carefully
• You have to file application at the time you want to redeem
or to shift your investment. Investment Manager/ AMC is
not going to ask you to redeem or shift whenever market
start falling.
• You should have to watch in what type of investment your
I.M. is investing your money. If you don’t, then you will
suffer losses in future. Because I.M. get commissions from
businesses to invest in their companies.
• You should carefully know that market travels in both the
direction and there is always presence of risk factor in the
market. Therefore you will not have gains always.

31. Video

32. Questionnaire On Mutual Funds

33. 20%
55%
23%
2%
Data
A :- 20%
B :- 55%
C :- 23%
D :- 02%
Q.1- How do you find Yourself as a mutual fund investor?
A. Totally Ignorant
B. Partial knowledge of M.F.
C. Aware of certain schemes
D. Fully Aware.

34. 10%
90%
Data
A :- 10%
B :- 90%
Q.2- Have you ever invested your money in M.F.?
A. Yes
B. No

35. 76%
14%
10%
0%
Data
A :- 76%
B :- 14%
C :- 10%
D :- 0%
Q.3- How do you came to know about M.F.?
A. Advertisement
B. Peer Group
C. Banks
D. Financial Advisor

36. 50%50%
Data
A :- 50%
B :- 50%
Q.4- Do you perceive M.F. Investment is completely safe?
A. Yes
B. No.

37. 95%
5%
Data
A :- 95%
B :- 05%
Q.5- Which one Mutual Fund do you prefer?
A. Systematic Investment Plan
B. One Time Investment Plan

38. 80%
0%
20%
Data
A :- 80%
B :- 0%
C :- 20%
Q.6- Objective Of investment?
A. Capital Appreciation
B. Tax Saving
C. Monthly Saving

39. 10%
30%
20%
40%
Data
A :- 10%
B :- 30%
C :- 20%
D :- 40%
Q.7- While investing money which factor you consider
most?
A. Liquidity
B. Low Risk
C. High return
D. Company Reputation

40. 20%
15%
65%
Data
A :- 20%
B :- 15%
C :- 65%
Q.8- Which scheme do you prefer for investment?
A. Growth
B. Income
C. Balanced

41. 0% 0%
73%
27%
Data
A :- 0%
B :- 0%
C :- 73%
D :- 27%
Q.9- How frequently you would like to invest in mutual
fund?
A. Daily
B. Weekly
C. Monthly
D. Quarterly

42. 5%
28%
34%
33%
Data
A :- 05%
B :- 28%
C :- 34%
D :- 33%
Q.10- How long would you like to Invest?
A. Less Than Year (<1year)
B. 1-2 years
C. 2-3 years
D. Above 3 years (>3year)

43. 0%
45%
29%
26%
Data
A :- 0%
B :- 45%
C :- 29%
D :- 26%
Q.11- What is your expected return?
A. Less Than 0% (<10%)
B. 10-15%
C. 15-20%
D. Above 20% (>20%)

44. 64%5%
19%
12%
Data
A :- 64%
B :- 05%
C :- 19%
D :- 12%
Q.12- Which AMC will you prefer to invest?
A. Reliance
B. UTI Mutual Funds
C. SBI Mutual Funds
D. Others

45. Bibliography :-
www.FundSupermarket.com
www.Investopedia.com
www.Google.com
www.SEBI.com
www.MutualFundsSahiHai.com
www.FranklinTemptation.com
www.AMFI.com
www.EconomicTimes.com
www.MoneyControl.com
www.SunilMiglani.com

46. Conclusion
After doing lots of researches and studying lots of
material on mutual funds. It is concluded that mutual
fund are professionally-managed investment scheme,
that brings together people who invests their money in
stocks, bonds and other securities through AMC’s and
Investment Managers. But mutual funds are subject to
market risk and one should be very careful while
investing in it. Not only while investing but also one
should have proper check even after making the
investments. Only then you can make such investments
profitable. It is also concluded that M.F. are not the
universal solution to all the investments.

47. Thank You