Professional Documents
Culture Documents
Mutual Fund
Used Concept
History of Mutual Fund
Types of Mutual Fund
Advantages of Mutual Funds
Organisation of a Mutual Fund
Types of Mutual Fund Schemes
Frequently Used Terms
Gagan
Pratik
Arpan
Anamica
Akhilesh
Yudhjit
WHAT IS MUTUAL FUND?
Mutual Fund is a trust that pools the savings of a
number of investors who share a common
financial goal. Each scheme of a mutual fund
have different character and objectives. Mutual
funds issue units to the investors, which
represent an equitable right in the assets of the
mutual fund.
CONCEPT
A Mutual Fund is a trust that pools the savings of a number of
investors who share a common financial goal.
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
HISTORY OF MUTUAL FUND
1-History of Mutual Funds 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. Not only in the developed world, but in the developing countries also
different types of mutual funds are gaining popularity very fast in a tremendous way.
But, there was a time when the concept of Mutual Funds were not present in the
economy
2-There is an ambiguity about the fact that when and where the Mutual Fund Concept
was introduced for the first time. According to some historians, the mutual funds
were first introduced in Netherlands in 1822. But according to some other belief, the
idea of Mutual Fund first came from a Dutch Merchant ling back in 1774. In 1822,
that idea was further developed. In 1822, the concept of Investment Diversification
was properly incorporated in the mutual funds. In fact, the Investment
Diversification is the main attraction of mutual funds as the small investors
are also able to allocate their little Funds in a diversified way to lower Risks.
HISTORY……………………..
2- Automatic investment. 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 $100 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 cost of your fund shares is lower than
the average price of the fund shares during the same period.
HDFC MUTUAL FUND
1- H.D.F.C GROWTH FUND
Objective:
To generate long term capital appreciation from a portfolio that
is invested predominantly in equity and equity related instruments.
Investment Information
Type of Scheme Open Ended
Nature of Scheme Equity
Launch 11-09-2000
Face Value(Rs./unit) 10
Fund size(Rs. In lakhs) 87867.92 march 31,
2008
Plans Growth
2-H.D.F.C EQUITY FUND
Objective:
To achieve capital appreciation.
Investment Information
Type of Scheme Open Ended
Nature of Scheme Equity
Launch 01-01-1995
Face Value(Rs./unit) 10
Fund size(Rs. In lakhs) 394439.11 march 31, 2008
Plans Growth
3-H.D.F.C TOP 200 FUND
Objective :
To generate long term capital appreciation from a portfolio of
equity and equity linked instruments primarily drawn from companies in
BSE 200 index.
Investment Information
Type of Scheme Open Ended
Nature of Scheme Equity
Launch 11-10-1996
Face Value(Rs./unit) 10
Fund size(Rs. In lakhs) 210243.97 march 31,
2008
Plans Growth
4-H.D.F.C CAPITAL BUILDER FUND
Objective:
To achieve capital appreciation in the long term.
Investment Information
Type of Scheme Open Ended
Nature of Scheme Equity
Launch 01-02-1994
Face Value(Rs./unit) 10
Fund size(Rs. In lakhs) 64571.81 march 31, 2008
Plans Growth
5-H.D.F.C CORE & SATELLITE FUND
Objective:
To generate capital appreciation through equity investment in
companies whose shares are quoting at prices below their true value.
Investment Information
Type of Scheme Open Ended
Nature of Scheme Equity
Launch 17-09-2004
Face Value(Rs./unit) 10
Fund size(Rs. In lakhs) 42974.98 march 31 2008
Plans Growth
RANKING OF FUNDS BASED ON 12 MONTHS
RETURN AS ON 31st MARCH, 2008
Sale Price
Is the price you pay when you invest in a scheme. Also called
Offer Price. It may include a sales load.
Repurchase Price
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
Price.
Contd…
Frequently Used Terms
Redemption Price
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.
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.