2. Objective
• To study about the benefits
available from mutual funds
investments.
• To study the types of schemes
available.
• To study about the regulations of
3. What is a Mutual Fund?
• A Mutual Fund is a trust that pools the
savings of a number of investors who
share a common financial goal.
• Anybody with an investible surplus of as
little as a few thousand rupees can invest
in Mutual Funds.
• These investors buy units of a particular
Mutual Fund scheme that has a defined
investment objective and strategy.
4. • The money collected is invested
by the fund manager in different
types of securities. These could
range from shares to debentures
to money market
instruments, depending upon the
scheme’s stated objectives.
• The income earned through these
investments and the capital
appreciation realized by the
scheme are shared by its unit
holders in proportion to the
number of units owned by them.
5. What Mutual Funds are not?
• MFs are not “get rich quick investments”.
• MFs are not “risk free investments”.
• MFs are not “assured return investment”.
• MFs are not “ a universal solution to all
investment needs.”
11. Disadvantages of Mutual
Fund
• No Guarantees- The value of your
mutual fund investment, unlike a bank
deposit, could fall and be worth less
than the principle initially invested.
• The Diversification "Penalty“-
Diversification can help to reduce your
risk of loss from holding a single
security, but it limits your potential for a
"home run" if a single security
increases dramatically in value.
Remember, too, that diversification
does not protect you from an overall
decline in the market.
12. • Costs- If the fund is purchased in a
taxable account, taxes may have to be
paid on capital gains. Keep track of the
cost basis of your initial purchase and new
shares that are acquired by reinvesting
distributions. It's important to compare the
costs of funds you are
considering. Always look at "net"
returns when comparing fund
performances. Net return is the bottom
line; an investment's true return after
all costs are deducted.
13. 10 REASONS TO INVEST IN
MUTUAL FUNDS
• Expert on your side: When you invest in a
mutual fund, you buy into the experience and
skills of a fund manager and an army of
professional analysts
• Limited risk: Mutual funds are diversification
in action and hence do not rely on the
performance of a single entity.
• More for less: For the price of one blue chip
stock for instance, you could get yourself a
number of units across a number of
companies and industries when you invest in
a fund!
14. • Investor protection: A mutual fund in
India is registered with SEBI, which
also monitors the operations of the
fund to protect your interests.
• Quick access to your money: It's good
to know that should you need your
money at short notice, you can usually
get it in four working days.
• Transparency: As an investor, you get
updates on the value of your
units, information on specific
investments made by the mutual fund
and the fund manager's strategy and
outlook.
15. • Convenience: You can invest directly with
a fund house, or through your bank
or financial adviser, or even over the
internet.
• Easy investing: You can invest in a
mutual fund with as little as Rs. 5,000.
Salaried individuals also have the
option of investing in a monthly
savings plan.
• Low transaction costs: A mutual
fund, by sheer scale of its investments
is able to carry out cost-effective
brokerage transactions.
16. Top Mutual Fund Companies
in India
• HDFC Bank. • TATA.
• HSBC. • UTI.
• ING Vysya. • Reliance.
• Kotak • ABN-AMRO.
Mahindra. • Baroda pioneer
• LIC. mutual fund.
• Morgan • Deutsche.
Stanley.
• SBI.
17. CONCLUSION
• The Mutual Fund industry is a
growing industry.
• Mutual Funds covers a
spectrum of investment options.
• We can invest directly or
through a professional money
