V Mutual Fund

V Used Concept
V History of Mutual Fund
V Types of Mutual Fund
V Advantages of Mutual Funds
V Organisation of a Mutual Fund
V Types of Mutual Fund Schemes
V Frequently Used Terms
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V A mutual fund is a pool of money managed by
a professional money manager.
V The objective and the risk level are outlined in
a document called a prospectus. The
prospectus provides detailed guidelines for the
types of investments the manager can
purchase.
V A mutual fund is also known as an open-ended
investment fund, which means the fund sells
units (of this pool on money) upon request.
V A Mutual Fund is a trust that pools the savings of a number of
investors who share a common financial goal.

V The money thus collected is then invested in capital market

instruments such as shares, debentures and other securities.

V The income earned through these investments and the capital

appreciation realized are shared by its unit holders in
proportion to the number of units owned by them.

V Thus a Mutual Fund is the most suitable investment for the

common man as it offers an opportunity to invest in a
diversified, professionally managed basket of securities at a
relatively low cost
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has evolved over the years and it is sure to appear
as something very interesting for all the investors of the world. In present
world, mutual funds have become a main form of investment because of
its diversified and liquid features
2-There is an ambiguity about the fact that when and where the  
 
  was introduced for the first time. According to some historians,
the mutual funds were first introduced in 

in 3 22. But
according to some other belief, the idea of Mutual Fund first came from a
Dutch Merchant ling back in 3

.
3- After being popular in Great Britain and France, Mutual fund concept
traveled to U.S.A in the 3 s. In 32s and 33s, the Mutual Fund
popularity reached a new high. There was record investment done in
mutual funds. But, before 32s,the mutual funds were not like the
modern day mutual funds
-The modern day mutual funds came into existence in 32, in Boston.
Massachusetts Investors Trust introduced the   
 
and
the funds were available from 32 . At present this Massachusetts
Investors Trust is known as  
 

 

Mutual Fund is an instrument of investing money. Nowadays, bank rates
have fallen down and are generally below the inflation rate. Therefore,
keeping large amounts of money in bank is not a wise option, as in real
terms the value of money decreases over a period of time.
A mutual fund is a group of investors operating through a fund manager
to purchase a diverse portfolio of stocks or bonds. Mutual funds are highly
cost efficient and very easy to invest in. By pooling money together in a
mutual fund, investors can purchase stocks or bonds with much lower
trading costs than if they tried to do it on their own. Also, one doesn't have
to figure out which stocks or bonds to buy. But the biggest advantage of
mutual funds is diversification.
Diversification means spreading out money across many different types of
investments. When one investment is down another might be up.
Diversification of investment holdings reduces the risk tremendously.
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V Mrofessional Management
V Diversification
V Convenient Administration
V Return Motential
V Low Costs
V Liquidity
V Transparency
V Flexibility
V Choice of schemes
V Tax benefits
V Well regulated
' ( 
 {ou can invest any amount you want at one time, as long as
you meet the minimum requirements of that fund. Some funds have no
minimum for opening an account or no minimum for additional share
purchases, while others do.

' ) 
  
  Most funds offer plans that allow you to
transfer set amounts on a regular basis automatically from your bank account or
paycheck. This is a great way to save money on a routine basis.

With automatic investing, you get the benefits of dollar cost averaging. That is,
when you make regular investments in a mutual fund, such as investing $3
every month, you can take advantage of both the ups and downs of the market.
When the market is down, your monthly investment typically buys you more
shares of the fund, helping to increase your ownership in the fund. When the
market is up, your monthly investment typically buys you fewer shares of the
fund, helping you avoid buying too many shares at higher prices. Over a long
period of time, the end result is that the average ?
 of your fund shares is lower
than the average ? of the fund shares during the same period.
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V Objective:
To generate long term capital appreciation from a
portfolio that is invested predominantly in equity and equity
related instruments.
V Investment Information
V Type of Scheme Open Ended
V Nature of Scheme Equity
V Launch 33--2
V Face Value(Rs./unit) 3
V Fund size(Rs. In lakhs)

.2 march 33,
2
V Mlans Growth
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V  
  
 
V Type of Scheme Open Ended
V Nature of Scheme Equity
V Launch 3-3-3
V Face Value(Rs./unit) 3
V Fund size(Rs. In lakhs) 33.33 march 33, 2
V Mlans Growth
,/  0
To generate long term capital appreciation from a
portfolio of equity and equity linked instruments primarily drawn
from companies in BSE 2 index.
V  
  
 
V Type of Scheme Open Ended
V Nature of Scheme Equity
V Launch 33-3-3
V Face Value(Rs./unit) 3
V Fund size(Rs. In lakhs) 2323.
march 33,
2
V Mlans Growth
,/ 0
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V  
  
 
V Type of Scheme Open Ended
V Nature of Scheme Equity
V Launch 3-2-3
V Face Value(Rs./unit) 3
V Fund size(Rs. In lakhs) 
3. 3 march 33, 2
V Mlans Growth
V ,/ 0
To generate capital appreciation through equity
investment in companies whose shares are quoting at prices below
their true value.
V  
  
 
V

V Type of Scheme Open Ended

V Nature of Scheme Equity
V Launch 3
--2
V Face Value(Rs./unit) 3
V Fund size(Rs. In lakhs) 2
. march 33 2
V Mlans Growth
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 In general, property is considered a fairly low-risk investment, and can be
less volatile than shares (although, this is not always the case). Some of the
advantages of investing in property include:
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Î a number of deductions can be claimed on your tax
return, such as interest paid on the loan, repairs and maintenance, rates
and taxes, insurance, agent's fees, travel to and from the property to
facilitate repairs, and buildings depreciation.
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  Î tax deductions can also be claimed as a result of
negative gearing, where the costs of keeping the investment property
exceed the income gained from it.
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  Î many people like the idea of an investment
that can fund them in their retirement. Rental housing is one sector that
rarely decreases in price, making it a good potential option for long-term
investments
V 1
 




 Î there are many benefits from having an
investment property when deciding to take out another loan or invest in
something else. Showing your potential lender that you have the ability to
maintain a loan without defaulting will be highly regarded. The property
can also be useful as security when taking out another home, car or
personal loan.
V 


 Î Low-risk investments are always popular with
untrained "mum and dad" investors. Mroperty fits this criteria with returns
in some country areas reaching 3 per year. Housing in metropolitan
areas is constantly in demand with the high purchase price being offset by
substantial rental income and a yearly return of between  and .
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Î investment properties can be
purchased at  LVR (loan to valuation ratio), or up to  LVR with
mortgage insurance. The LVR is calculated by taking the amount of the
loan and dividing it by the value of the property, as determined by the
lender. This high leverage capacity results in a higher return for the
investor at a lower risk due to having less personal finances ties up in the
property (  of the purchase price was provided by the mortgagee).
V )

:
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Net Asset Value is the market value of the assets of the
scheme minus its liabilities. The per unit NAV is the
net asset value of the scheme divided by the number of
units outstanding on the Valuation Date.

V 
1 
Is the price you pay when you invest in a scheme. Also
called Offer Mrice. It may include a sales load.

V + 

1 
Is the price at which a close-ended scheme repurchases
its units and it may include a back-end load. This is
also called Bid Mrice.
ü Contd«
V Redemption Mrice
Is the price at which open-ended schemes repurchase
their units and close-ended schemes redeem their units
on maturity. Such prices are NAV related.

V Sales Load
Is a charge collected by a scheme when it sells the
units. Also called, ¶Front-end· load. Schemes that do
not charge a load are called ¶No Load· schemes.

V Repurchase or ¶Back-end· Load

Is a charge collected by a scheme when it buys back the
units from the unit holders.
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