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
9. Flow Cycle of a Mutual Fund Mutual Funds defined….a flow cycle
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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
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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
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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
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
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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
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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
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
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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
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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
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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
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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
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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
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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
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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?
A regular mutual fund invests in stocks, bonds and fixed income securities depending on its objective. Hence the investor gets an opportunity to participate in these market-linked instruments while utilizing the fund manager's expertise. Fund of funds further extends this concept wherein a mutual fund invests in units of other mutual fund schemes. So what is motive behind having a FoF? The answer is - ?Diversification?. Fund of funds takes diversification to a new level.
Contra with Contra… and not contra with SEBI -mandatory for funds to have a benchmark– lets say Sensex… fund should beat Sensex if the Sensex drops by 10% over a period of two months and during that time, the fund's NAV drops by only 6%, then the fund is said to have outperformed the benchmark. Report submitted to SEBI every 6 months
