4. Learnings :-
After completing my post-graduation in management, I started my career with
Siemens Ltd in Sales function. From there on, I have grown into various roles with
broad horizons, right from heading the Business Development area to becoming a
Delivery head for IT Company, then being a Principal consultant in BFSI segment
and now as Technology Head for ICICI Prudential AMC. Throughout my professional
journey, I have served in various functional areas for organizations.
More than I chose information security as a profession, I believe the profession
chose me. In my opinion, information security provides new challenges every day; not
just black and white, but many challenges are grey. The satisfaction that one gets
while conquering such challenges is an adrenaline rushes in itself; hence I am quite
thrilled looking into this area of business.
The way business is being conducted has evolved drastically over time, posing new
challenges to all Information security professionals. Data movement is no longer
confined to a boundary and is increasingly being used in a borderless world.
Innovative use of newer platforms like Social Media and Mobility including concepts
like Bring Your Own Device (BYOD),work from anywhere, mobile applications and
internet present big challenges to CISOs ;thereby, requiring them to innovate and
support the business while securing data movement using these new platforms.
5. Mr Lalit Popali believe that Information Security is a core function and also a very sensitive part
for the management of any organization. Core functions should not be outsourced completely as
outsourcing will increase the risks for the organization. Having said that, some of the areas
where outsourcing can work are Penetrations testing, Vulnerability Assessments, Network &
application security reviews, consulting assignments to establish or implement new standards or
frameworks etc. Hence, any outsourcing activity should be viewed in terms of the benefits it
could bring and risks it could reduce for the organization.
There are many overlaps between the two but there are certain distinctions as well.
Data security deals more with ensuring that data is not stolen through external or
internal entities; hence, many technological and procedural barriers are built around
it so that data remains protected. On the other hand, data privacy deals with those
aspects where the owner of the data is the only person who should have access to
the data unless the owner provides permission for another person or entity to access
the data in order to provide certain services.
Currently, we see many vendors using FUD (Fear, Uncertainty, and Doubt) to sell
their products or services. In my opinion they should rather focus on demonstrating
how their solution will create value for the organization. They should look at
becoming trusted and strategic partners in the information security journey for the
organization and if they manage to have such a positive approach, the rewards that
comes along will be there for all to see.
7. Learning :
As I listen that video I understand that,
Mr Chitnis Come with a hard experience in the NBFC(Non
Banking Financial Company.)Sector.
He Work with companies like L&T, Fulletron & Capital First He
has been a key Professional in forming Departments for reasury
in organisation.
Capital First is a Provider of financial service across consumer &
Wholesale business with aspiration to grow into a significant
financial conglomerate. Capital First is a systemically important
NBFC With Record of Consistence growth & Profitability.
Capital First has a comprehensive product suit to meet multiple
Financial Needs of customers including Consumer leading ,
Corporate leading.
8. At the time of volatile interest and exchange rates companies need to take a
closer look at their treasury and foreign exchange management functions to
capitalize on the growth opportunities offered by the booming Indian
economy.
In the wake of global competition, economic uncertainty, tax law changes and
ethical concerns over financial dealings, the role of treasurer in an
organization has become more important, complex and demanding than ever.
He Said The Corporate Treasury Forum will bring together industry leaders in
treasury management to share their views, experiences and expertise
through sessions and in-depth case studies. At this conference the experts
will discuss the entire gamut of activities involved in the important function
of treasury management.
The Corporate Treasury Forum also includes an interactive workshop on Forex
Management sponsored by Kshitij.com to help you efficiently manage the
forex risk for your organization.
With the rising rupee there are new challenges and opportunities for your
organization to manage costs and increase profits. This workshop shifts the
focus from the hype surrounding the appreciation of rupee to risk
management and how your organization can benefit from it.This two day
forum provides a platform for CFOs and Treasurers to discuss the best
practices in treasury and risk management.
10. Learnings :
Mr Vinay Mahajan is a vive Chairman & CEO of Money house a successfully
Start up.
He Comes with 20years of rich experience in the fianancial Industry is an
IIN Calcutta.
He Was Perviously with Aanand rathi Financial Services. Is a Highly Qulified
Acacdemic Individual .
As per Him Money market means e.g Bhartiya Samruddhi Finance Ltd, a
Hyderabad-based NBFC and a BASIX group company, has raised Rs. 118 crore
from three private equity investors.
Matrix Partners India has invested Rs. 100 crore, while existing investors
Hivos Triodos Fonds and Lok Capital have invested Rs. 18 crore.
Shareholder
With this investment, Matrix Partners India will pick up a 18 per cent stake in
BSFL, becoming the largest non-promoter shareholder.
After this fund raising, the stake of the promoters and employees will come
down to 33 per cent, said Mr Vijay Mahajan, Chairman, BASIX.
“
11. The capital infusion will allow us to grow our loan book and provide
operational scale which will bring down costs. This will bring down
the annual percentage rate by 100 basis points on loans,” said Mr
Sanjeev Viswanathan, Managing Director and CEO, BSFL.
After this infusion, BSFL's capital adequacy ratio will be at 25 per
cent. BSFL will again look to raise funds next year as these funds
will be sufficient only for the next nine months, said Mr S.
Ramachandran, Chief Financial Officer, BSFL.
Mr Vishwanathan said the equity fund raising will give the company
a headroom to raise Rs. 1,500 crore in debt.
BSFL will eventually look to raise funds through an IPO but it's too
early to discuss, said Mr Mahajan.
14. MUTUAL FUND :-
It is an innovative instrument.
Collective investment that allows many
investors with a common objective to
pool individual investment & give to a
professional manager who in turn would
invest these monies. In line with the
common object.
18. TYPES OF MUTUAL FUND :-
TYPES OF MUTUAL
FUND
BY
CONSTITUTION
BY
INVESTMENT
BY NATURE OF
INVESTMENT
19. BY CONSTITUTION
CLOSE ENDEDOPEN ENDED
o NO FIXED MATURITY.
o VARIABLE CORPUS
o NOT LISTED
o BUY FROM & SELL TO THE
FUND
o ENTRY & EXIT AT NAV
RELATED PRICE
o FIXED MATURITY
o FIXED CORPUS
o GENERALLY LISTED
o BUY & SELL IN THE STOCK
EXCHANGES
o ENTRY & EXIT AT THE
MARKET PRICE
20. BY INVESTMENT
Load & Non load Funds.
Tax Exempt & Non Tax Exempt
BY NATURE OF
INVESTMENT
Financial Assets:- Equity, Money Market, Debt
Physical Assets :- Metal, Real Estate
22. Why Long Mutual fund ???
Stock Market are very sophisticated.
Free Pricing & integration With World Market.
Time Knowledge & Luck.
Substantial Capital For Diversification.
24. What is offer Documents???
Contains the details of scheme.
Filed with SEBI.
Like Prospectus of an IPO.
Close ended Scheme- One Time.
Open ended Scheme- Perpetual- Kept updated from time to time.
26. Who can Invest ???
Resident Indian Individuals
Indian Companies
Trusts / Charitable Institution /PF’s
Banks
Insurance Companies
NRI
Partnership Firms Etc
27. AFFORDABILITY provides an opportunity for a small investors.
WIDE CHOICE offers a variety scheme meet the investment need of all
investors.
YOUR NEEDS:-
short terms :- banks/ liquid funds
medium term
(1 to 3 yrs.) :- debt or debt related funds
(3 to 5 yrs.) :- mix of debt/ equity or funds with an appropriate
mix balance.
long term :- equity or equity related funds
Well regulated governed by multiple agencies:-
MOF (MINISTER OF FINANCE)
CLB (COMPANY LLOW BOARD)
ROC ( REGISTER OF COMPANY)
SEBI
RBI
TRUSTEES
AUDITORS
BOD
28. INVESTOR’S RIGHTS & OBLIGATIONS
RIGHTS –
Legal limitations.
Unit holder’s are not distinct from trust, they cannot sue trust.
Sponsor do not have any legal obligations.
(limited to initial contribution)
No rights to prospective investors.
OBLIGATIONS –
Must read offer doc & AOD
Beware of risk factors.
Must monitor investments regularly.
30. NAV
NAV is influenced by:-
Purchase & Sale of investment
Valuation of investment
Other assets and liabilities
Units sold and redeemed
NAV = Net assets of scheme / No.of units outstanding
i.e.
market value of investment + receivables + other accrued income +
other assets – accrued expenses – other payables – other liabilities
No.of units outstanding as at nav date
31. CHANGE IN NAV
FORMULA :
For NAV change in absolute terms =
(NAV at end of period – NAV at beginning of period * 100
NAV at beginning of period
For NAV changed in annualized terms =
(NAV change in % in absolute terms) * (365 / no.of days)
32.
33. Topics
MUTUAL FUNDS PUMPED RS 1 LAKH CRORE IN APRIL-MAY.
MUTUAL FUNDS’ ASSET BASE REGAINS ?12 LAKH CR MARK
WHAT IS THE DIFFERENCE BETWEEN INDEX FUNDS AND MUTUAL FUNDS?
MUTUAL FUNDS: 5 REASONS WHY YOU SHOULD INVEST.
THINGS TO KEEP IN MIND WHILE ADDING A JOINT HOLDER FOR MUTUAL
FUNDS.
AFTER FIVE-YEAR HIATUS, MUTUAL FUNDS TURN TO INVESTING IN
MICROFINANCE COMPANIES.
WHEN SHOULD YOU OPT FOR A STP OR SYSTEMATIC TRANSFER PLAN IN A
MUTUAL FUND?
MUTUAL FUNDS INVEST RS40,000 CRORE IN DEBT MARKETS DURING APRIL-MAY.
MUTUAL FUND INDUSTRY SIP COUNT UP 18 PER CENT TO 73 LAKH.
IS IT TIME TO BOOK PROFITS IN YOUR MUTUAL FUND SCHEME?
34. AMFI: MUTUAL FUNDS PUMPED RS 1 LAKH CRORE IN APRIL-MAY
LEARNING :
Investors have pumped in over Rs 1 lakh crore into various mutual fund
schemes in the first two months of the current financial year, 2015-16, with
equity and money markets contributing the most.
This is slightly lower in comparison to Rs 1.46 lakh crore net inflows witnessed
in the first two months of the 2014-15 fiscal.
According to the latest data available with Association of Mutual Funds in
India ( Amfi), investors put in a net Rs 1.12 lakh crore in MF schemes in April
and May.
35. "It has been across asset classes, but investors' participation in equity
oriented funds is a positive thing for the industry. Despite the recent
volatility in the markets, fund managers are bullish on the equity schemes,"
Quantum AMC Associate Fund Manager (Equity) Nilesh Shetty said.
"Even in case there is some instability in the market, we may not see huge
redemptions as investors have seen good returns by investing in equities in
the medium and long term," he added.
Liquid or money market category witnessed an inflow of about Rs 86,000
crore, while equity schemes saw an infusion of Rs 20,256 crore.
There are 44 mutual funds in the country and their total Average Asset
Under Management stands at over Rs 12 lakh crore.
- ECONOMIC TIMES
36. MUTUAL FUNDS’ ASSET BASE REGAINS ?12 LAKH CR MARK
LEARNING:
The mutual fund industry saw assets under management return to over ?12 lakh
crore in May, mostly through inflows into equity and income funds, according to
data released by the Association of Mutual Funds in India.
Income, equity and balanced funds saw the highest inflows, which, coupled with
mark-to-market gains helped the industry’s strong show on the AUM front.
Liquid funds see outgo
Although ridden with volatility, the benchmark CNX Nifty gained 3.1 per cent in
May, after falling 3.7 per cent and 4.6 per cent in April and March, respectively.
However, money went out of liquid funds to the tune of ?15,657 crore, while ETFs
— gold and others — also witnessed outflow.
- BUSINESS LINE
37. WHAT IS THE DIFFERENCE BETWEEN INDEX FUNDS AND
MUTUAL FUNDS?
LEARNING:
38. Index Fund Mutual Fund
o Index Funds today are a source of
investment for investors looking
at a long term, a less risky form
of investment.
o The success of index funds
depends on their low volatility
and, therefore, the choice of the
index.
o There are many indexes such as
banking, IT, metals, industrial,
infrastructure, energy etc. and
each segment has its own index.
These funds completely replicate
the respective index.
o Index funds tend to do well in a
bull market. While, in a downtrend
they lose money if they stick to
the index.
o A mutual fund is a mechanism for
pooling the resources by issuing units to
the investors and investing funds in
securities in accordance with objectives
as disclosed in offer document.
o In mutual funds, investment set of
portfolio managers assess the market
trends and make investments in funds
based on that. The fee charged for
actively managed funds are high.
o Mutual fund issues units to the
investors in accordance with quantum of
money invested by them. Investors of
mutual funds are known as unit holders.
39. Index Fund Mutual Fund
o Such funds are managed
passively. They only track the
performance of the index. Such
funds are charged less as there
is no much involvement of the
fund managers.
- goodreturns
40. MUTUAL FUNDS: 5 REASONS WHY YOU SHOULD INVEST
LEARNING
Mutual Funds pool money from various investors and invest the same in stocks,
bonds, short-term money-market instruments, other securities or assets, or
some combination of these investments.
These combined holding together is known as Portfolio. Each unit represents an
investor's proportionate ownership of the fund's holdings and the income those
holdings generate.
Reasons why should Consider investing in Mutual Fund.
41. 1) Professional Management
Money is invested through fund managers, so one need not worry and as the
decision is taken by portfolio managers.
2) Diversification
Diversification is an investing strategy that can be neatly summed up as "Don't
put all your eggs in one basket".
By owning shares in a mutual fund instead of owning individual stocks or bonds,
the risk is spread out.
3) Economy of Scale
Because a mutual fund buys and sells large amounts of securities at a time, its
transaction costs are lower than what an individual would pay for securities
transactions.
4) Liquidity
Just like individual shares, mutual fund units are convertible into money by way
of sale in the market. One can buy and sell mutual fund units anytime at their
convenience. Many banks have sponsored their own line of mutual funds and the
minimum investment amount is small.
42. 5) Mutual Fund to suit your need
Mutual Fund offers wide range of funds to choose from depending on the goal
and risk profile. Mutual Fund can suit the need of young investors as well as a
senior citizen.
Conclusion
Difficulty in mutual fund lies in the transparency, as the fund is managed by fund
managers.
Fees charged by some institution is also high such as sales charges, fees and
expenses.
However, investors should examine each of the above features carefully before
investing in mutual funds. As mutual Fund investing are subject to market risk.
- goodreturns
43. THINGS TO KEEP IN MIND WHILE ADDING A JOINT HOLDER
FOR MUTUAL FUNDS
LEARNING
Adding a joint holder for mutual funds In order to ensure good housekeeping of
investments, it is always a good idea to have joint holding of investments so
that the joint holder can operate the account in the first holder's absence.
Letter to the fund house If a unit holder desires to add a second or a third
holder, then the same needs to be informed to the fund house through a letter
affixing the signatures of the second or third holder. The format of the
letter/request is available with the fund house or its registrar.
44. Documents
> Bank verification letter confirming holding pattern and signatures of all
holders.
> Self attested PAN card copies of the new holders.
> Mutual fund KYC acknowledgement copies of the new holders.
Declaration
Some fund houses may require separate stamped indemnity and declarations
from the existing and proposed joint holders to indemnify the AMC for any
claims or suits that may arise for adding joint holders.
Points to note
> It is best to change the nomination registered with the mutual fund post
addition of the joint holder.
> If the proposed holder is not KYC compliant, the first step would be to have
the individual fill up the KYC form and get the same registered.
The content is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.
- ECONOMIC TIMES
45. AFTER FIVE-YEAR HIATUS, MUTUAL FUNDS TURN TO INVESTING
IN MICROFINANCE COMPANIES
LEARNING
Mutual funds have started investing in debt issuances of microfinance
companies after a five-year hiatus. The lure of higher yields, top-grade ratings
and shorter tenure of loans are prompting fund houses to park funds in
microfinance securities.
Investments worth over Rs 1,000 crore have already flown into microfinance
papers bearing 11.5-13% coupon rates. HDFC MF, SBI MF, Reliance Mutual,
Kotak MF, and ICICI Pru MF, among others, have invested in papers issued by
SKS Microfinance, Janalakshmi Financial Services, Ujjivan Financial Services
and Equitas Micro Finance. All these papers yield 3-4% higher than top-rated
securities issued by companies.
46. "It's an opportunistic view on the sector. These papers give us very attractive
spreads and are much more than the best of corporate debt," said Lakshmi
Iyer, head of fixed income and products at Kotak Mutual Fund.
Mutual funds had stopped investing in microfinance companies after the blowup
in Andhra Pradesh in 2010, when several borrowers committed suicide due to
alleged harassment by lenders. This crisis led to promulgation of various laws to
control and regulate the scope of microfinance in the country.
"Microfinance, as a sector, has become more amenable to investments post the
AP crisis. Lots of regulatory controls have been put in place... the sector is very
stable for investments now. We expect the sector to do well in the years to
come," says Navneet Munot, CIO at SBI Mutual Fund.
Fund houses are investing in secured debentures issued by microfinance
companies. The security is in the form of receivables and fixed assets
hypothecated (to itself) by microfinance companies. Women-dominated joint
lending groups (JLGs) account for over 95% of the borrowers.
Banks - traditional lenders to microfinance companies - have become cautious
while lending to microfinance companies post the AP crisis. Some of them also
have internal caps on lending to smaller microfinance companies.
47. "MF investments will help us diversify our funding source. Funds on their part
will get better yields on their investments. It is a win-win for both parties,"
said VS Radhakrishnan, MD, Janalakshmi Financial Services.
Loans disbursed to women groups (clusters) carry better weightage as their
repayment rates are higher than the men clusters. Repayment rates are as high
as 99.5% among women borrowers, making them eligible for better credit
ratings. Microfinance debentures usually bear tenures of 12-36 months, but
foreclosure by borrowers reduce the term to as low as 18-24 months.
"We're only lending to MFIs that have good repayment record and sound
management. The profile of borrowers is clearly analysed before committing
funds," said Kotak's Iyer.
Sentiment in the micro-finance sector has improved after the Reserve Bank of
India (RBI) was appointed as the regulator of microfinance companies in the
country in 2012. RBI has also been entrusted with sweeping powers to control
lending rates and margins, apart from fixing prudential norms. Also, the Micro
Finance Institutions Bill of 2012 mandates an interest rate cap of 26% by the
companies, reducing the risks of political upheavals in the future.
- ECONOMIC TIMES
48. WHEN SHOULD YOU OPT FOR A STP OR SYSTEMATIC TRANSFER
PLAN IN A MUTUAL FUND?
LEARNING
It's highly possible that you would like to switch from one fund to the other for
various reasons when investing in a mutual fund.
For example, you may not be happy with a particular scheme or you would want
to switch because you may see the stock markets falling or for any other
reason.
Systematic Transfer Plans: Why It Is Important In A Mutual Fund?
Systematic Transfer Plan or STP is a mechanism whereby you can switch your
funds from one mutual fund scheme to the other. It give the mutual fund the
authorization to effect such a switch periodically, depending on the investor.
You can choose the number of units to be transferred along with the timing of
when it should be transferred.
Advantages of a Systematic Transfer Plans
49. Like an SIP, STP also offers an advantage. It helps in averaging the cost when
you find it difficult to time the market. It may help you to buy at a lower net
asset value. The other advantage is that it helps to rebalance your portfolio. For
example, you can allocate more to debt and less to equity when the markets are
high. On the other hand you can add more to equity and less to debts when the
markets are low.
Thus Systematic Transfer plans allow you to switch which is a big advantage.
How An STP Works?
You have to do things at the very outset. One is that you have to choose the
fund that you exit and choose a fund that you want to enter. The instructions
are then passed onto the mutual fund house accordingly.
For example, you may want to move money from a money market scheme to an
equity scheme and vice versa.
Remember, before effecting a change, do look for the exit load charges. You
may not be able to time the markets and may need professional advise
sometimes.
There are various types of Systematic Transfer plans. In a fixed STP you may
take out a fixed sum every month. On the other hand in capital appreciation STP
you may withdraw the same after you have made adequate money, irrespective
of the time. In a Flexi STP you may choose a variable amount that can be
transferred.
50. Conclusion
As mentioned earlier it is important to take advise on the timing of your switch.
Do not switch randomly unless you have knowledge. Also, as indicated earlier do
not forget that there could be exit loads. Do remember to check for the same.
- goodreturns
51. MUTUAL FUNDS INVEST RS40,000 CRORE IN DEBT MARKETS
DURING APRIL-MAY
LEARNING
This follows a fund infusion of nearly Rs6 lakh crore in debt markets in the
last fiscal year
Mutual fund managers pumped in more than Rs.40,000 crore in debt markets
during April-May this fiscal primarily on account of improved business sentiments.
This follows a fund infusion of nearly Rs.6 lakh crore in debt markets in the last
fiscal year. According to the Securities and Exchange Board of India (Sebi), fund
managers invested a net sum of Rs.17,389 crore in May and Rs.22,650 crore in
April, taking the total amount to Rs.40,039 crore in the ongoing fiscal year.
In comparison, mutual funds invested a net amount of Rs.13,420 crore in equities
during the first two months of 2015-16. “After a spectacular past fiscal, we are
upbeat about overall inflows in equities and debt markets for the current fiscal
year (2015-16) as well,” an industry expert said.
52. This inflow has helped the mutual fund industry to reach around Rs.12 lakh
crore mark in assets under management (AUM) by May-end.
Mutual fund is an investment vehicle with a pool of funds collected from
investors to buy securities such as stocks, bonds, money market instruments and
similar assets.
- LIVEMINT
53. MUTUAL FUND INDUSTRY SIP COUNT UP 18 PER CENT TO 73 LAKH
LEARNING
Showing a strong surge in retail investor interest, mutual fund industry has seen
the number of its new Systematic Investment Plans grow by 18 per cent to 73
lakh at the end of March 2015.
Mostly preferred by small investors, SIP allows investment of a fixed and small
sum on a monthly basis or other regular intervals in a mutual fund schemes.
The total SIP count of the industry rose to 73.05 lakh at the end of March this
year from 62.10 lakh last year, as per the latest data.
A rally in the stock markets and increased participation from retail investors has
helped mutual fund industry get more investments through the systematic
investment route, market insiders said.
Besides, a large amount of these SIPs have been added in B-15 cities as
investors from smaller towns and areas are showing great interest.
B-15 Cities are smaller cities and towns beyond the top-15 cities including metros
like New Delhi, Mumbai Kolkata and Chennai.
Mutual Fund houses have been organising investor education programmes to
reach out to retail investors and help them participate in the Indian stock
markets through the MF route.
Growth in SIP number is in line with the BSE Sensex surging by 25 per cent in
the last financial year.
- ECONOMIC TIMES
54. IS IT TIME TO BOOK PROFITS IN YOUR MUTUAL FUND SCHEME?
LEARNING
Some mutual fund schemes until the last month had given 100 per cent returns in
the last one year, especially the small and mid cap funds.
Those who had not booked profits in March, have seen net asset values erode in
April, as the Sensex and Nifty have fallen almost 10 per cent, since peak levels of
30,000 points seen in early March in the Sensex.
If you are a large cap mutual fund investor, your scheme would have shed at least
8-10 per cent in net asset value since March.
55. Many investors are disappointed the way markets cracked in April and many are
asking whether its time to book profits in mutual fund schemes?
Should you book profits in mutual fund schemes?
It's always the most difficult question any analysts tracking the markets would
like to answer. But, let's put things in right perspective. If you had invested a
year back in any large cap fund, you would have made a return of as high as 40-
60 per cent in the last one year. This is stupendous returns by any stretch of
imagination.
If you think that you are going to generate similar returns in the next one year,
just forget it. If you can generate returns of 15 per cent, consider that a decent
return from a mutual fund scheme. But, if you are in a small or medium cap fund,
the risk is going to be very high. If the markets fall even 2 per cent from year,
your portfolio could take a severe beating.
On the other hand in a large cap fund you are relatively better insulated. The
markets have already fallen sharply in the last one month. There's no point in
exiting a mutual fund scheme now, since the net asset value would have dropped.
For example, the HDFC Top 200 Fund has seen a negative return of 7 per cent
return in the last one year.
Therefore, it would be a good idea to sell your mutual fund scheme, when the
Sensex crosses 30,000 points. At least you would get better returns then.
goodreturns