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A Presentation On Mutual Funds

This presentation provides an overview of mutual funds. It defines mutual funds as investments where individuals pool their money together into a common fund managed by professional fund managers. It discusses the benefits of mutual funds like professional management, diversification, and liquidity. It also outlines some common misconceptions about mutual funds. The presentation explains key mutual fund concepts such as net asset value, returns from capital appreciation and dividends, and different types of mutual funds. It emphasizes the benefits of systematic investment plans and highlights reasons why mutual funds are suitable for many investors.

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82 views15 pages

A Presentation On Mutual Funds

This presentation provides an overview of mutual funds. It defines mutual funds as investments where individuals pool their money together into a common fund managed by professional fund managers. It discusses the benefits of mutual funds like professional management, diversification, and liquidity. It also outlines some common misconceptions about mutual funds. The presentation explains key mutual fund concepts such as net asset value, returns from capital appreciation and dividends, and different types of mutual funds. It emphasizes the benefits of systematic investment plans and highlights reasons why mutual funds are suitable for many investors.

Uploaded by

sebby
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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A PRESENTATION ON

MUTUAL FUNDS
P R E SE NT ED B Y: S A HI B ( A 0 5 )
WHAT IS A MUTUAL FUND?
• A Mutual Fund collects the money from investors and
invests money on their behalf.

• Investors having a common financial goal pool their


money into a common fund.

• Investors can choose a mutual fund scheme based on


their financial goal and start investing to achieve the
goal.
Challenges involved investing
directly in Capital Market
• Time

• Expertise

• Lack of information

• Volatility
MYTHS ABOUT MUTUAL FUNDS
• Mutual Funds only invests in shares.

• Mutual Funds are prone to very high risks.

• Mutual Funds are not reliable and people rarely


invest in them.
HOW A MUTUAL FUND WORKS?
WHAT IS NET ASSET VALUE
(NAV)?
• The Net Asset Value (NAV) of a mutual fund is the price
at which units of a mutual fund are bought or sold. It is
the market value of the fund after deducting its
liabilities.
• NAV indicates the market value of the units in a fund.
So, it helps an investor keep track of the performance
about the mutual fund.
• Net Asset Value (NAV) = (Assets – Liabilities) / (Number
of Outstanding units)
• Assets = Market value of mutual fund investments +
Receivables + Accrued Income
• Liabilities = Expenses
HOW DO YOU MAKE MONEY
FROM A MUTUAL FUND?

Capital appreciation

Interest / Dividend Income

21/07/2019
TYPES OF MUTUAL FUNDS
• On the basis of maturity

• On the basis of Investment objective


ON THE BASIS OF MATURITY
• Open ended Fund

• Closed ended Fund

• Interval Fund
ON THE BASIS OF INVESTMENT
OBJECTIVE
• Equity/Growth Funds

• Debt/Income Funds

• Balanced Funds

• Money Market Funds

• Gilt Funds
INVESTMENT IN MUTUAL FUNDS
THROUGH SIP
• Systematic Investment Plan is a method of
investing a fixed sum, at a regular interval, in a
mutual fund.
• Benefits of SIP:
• Rupee Cost Average
• Compounding
• No timing the market
• Disciplined savings

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BENEFITS OF INVESTING IN
MUTUAL FUNDS
• Professional Management
• Diversification
• Less investment cost
• High return potential
• Liquidity
• Transparency
• Flexibility
• Well Regulated
• Tax Benefits

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HOW TO INVEST IN MUTUAL
FUNDS
• Identify your investment needs

• Choose the right mutual fund

• Select the ideal mix of schemes

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COMMON REASONS FOR NOT
INVESTING
• I don’t have enough money to invest
• I am too busy making money to worry about
managing it
• I don’t have the time or expertise to follow the
market movements and make investments at the
right time

MUTUAL FUNDS
is the only answer to all reasons.

21/07/2019
THANK YOU

21/07/2019

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