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Mutual Fundsssss

This document discusses mutual funds (MF) in India, including their structure, types, advantages, benefits, and recent innovations. It addresses common myths about MFs, noting they invest in both shares and debt securities, have existed in India since 1964, and offer risk management and returns. The structure of MFs in India is regulated by SEBI and includes sponsors, trustees, asset management companies, and custodians. MFs are also classified based on structure, growth objectives, and special schemes. Recent innovations include electronic traded funds (ETFs) and gold ETFs.

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seeta gupta
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26 views20 pages

Mutual Fundsssss

This document discusses mutual funds (MF) in India, including their structure, types, advantages, benefits, and recent innovations. It addresses common myths about MFs, noting they invest in both shares and debt securities, have existed in India since 1964, and offer risk management and returns. The structure of MFs in India is regulated by SEBI and includes sponsors, trustees, asset management companies, and custodians. MFs are also classified based on structure, growth objectives, and special schemes. Recent innovations include electronic traded funds (ETFs) and gold ETFs.

Uploaded by

seeta gupta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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TOPICS COVERED.

concept of MF
working of MF
myths and facts of MF
structure of MF
types of MF
advantages of MF
benefits of MF
MF players in India
latest trends of MF
Recent innovation in MF
Net Asset Value (NAV)

MYTHS AND FACTS ABOUT MF


Myths:mutual funds invest only in shares.
o mutual funds are very high risks/actively traded.
o mutual funds are very new in the
financial market.
o the good thing about mutual funds is
that you dont have to pay attention to
them.
o

CONT.
o

Facts:-

o equity

instruments like shares are only a part of


the securities held by mutual funds.mutual funds
also invest in debt securities which are much
safer.
o mutual funds are there in India since
1964.mutual funds market has evolved inU.S.A
and is there for the last 60 years.
o mutual funds are the best solution for people who
want to manage risks and get good returns.

CONSTITUTION OF MF IN INDIA.
The constitution are designed to safeguard
investors,check activities of mutual fund &
ensuring financial discipline through
transparency & fair play.
SEBI (Mutual Fund) regulation require a 4
tier system to organize Mutual Fund i.e.
- Sponsor
- Trustee
- Asset Management Company
- Custodian

ON THE BASIS OF STRUCTURE


o
o

open ended schemes


closed ended schemes

ON THE BASIS OF GROWTH


OBJECTIVE.
growth funds
income funds
balanced funds
money market funds

ON THE BASIS OF SPECIAL SCHEMES

industry specific schemes


o index schemes
o sectoral schemes
o

ADVANTAGES
Diversification
Low cost of asset management
Liquidity
Transparency
Flexibility
Choice of schemes
Tax benefits

BENEFITS OF INVESTING IN MF
o
o

Easy to buy and sell.


Investments can be made in lump
sum or periodic payments.
Mutual fund industry in India is very
well regulated and transparent.
Professional management-saves
time,costs and reduces risk.
Diversification-to protect from
downside risk.

LIST OF MF COMPANIES IN INDIA..

CONT

RECENT INNOVATION IN MF..

Electronic Traded Funds(ETFs):- A security that tracks an index,a


commodity or a basket of assets like an index
fund,but trades like a stock on an exchange.
- ETFs experience price changes
throughout the day as they are bought and
sold.
- because it trades like a stock,an ETF
does not have net asset value (NAV)
calculated every day like a mutual fund does.

CONT

Gold ETF :-Buying Gold ETF is purchasing gold


in electronic form.
- Gold ETF makes it easier for you to
invest in gold.
- The investment objective of gold
ETFs is to provide you with returns that
closely correspond with the domestic
price of real gold.

INDIA

The recent trends since last year clearly


suggest that the average investors have lost
money in equity.pople have now started
poting forportfolio managers.
Entrance of multinational companies.
Mutual Fund in India now offer a wide range
of schemes to choose.
Mutual Fund are turned to be the mos
preferred choice worldwise for both small and
big investors due to their advantages.

NET ASSET VALUE (NAV)

Net Asset Value represent a funds per share


market value.this is the price at which investors
buy(bid price) fund shares from fund company and
sell them(redemption price)to a fund company.
an NAV computation is undertaken once at the end
of each trading day based on the closing market
price of the portfolios securities.
o NAV(per unit)= Total Market Value- Fund
o
liabilities
No.of outstanding Units

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