Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Save to My Library
Look up keyword or section
Like this
3Activity

Table Of Contents

0 of .
Results for:
No results containing your search query
P. 1
MFBM Workbook

MFBM Workbook

Ratings: (0)|Views: 20 |Likes:
Published by nshtirkey

More info:

Published by: nshtirkey on Apr 02, 2011
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

01/19/2012

pdf

text

original

 
 Copyright © 2009 by National Stock Exchange of India Ltd. (NSE)Exchange Plaza, Bandra Kurla Complex,Bandra (East), Mumbai 400 051 INDIAAll content included in this book, such as text, graphics, logos, images, data compilationetc. are the property of NSE. This book or any part thereof should not be copied,reproduced, duplicated, sold, resold or exploited for any commercial purposes.Furthermore, the book in its entirety or any part cannot be stored in a retrieval system ortransmitted in any form or by any means, electronic, mechanical, photocopying, recordingor otherwise.
 
1
Preface
The
National Stock Exchange of India Ltd. (NSE)
, set up in the year1993, is today the largest stock exchange in India and a preferred exchangefor trading in equity, debt and derivatives instruments by investors. NSE hasset up a sophisticated electronic trading, clearing and settlement platform andits infrastructure serves as a role model for the securities industry. Thestandards set by NSE in terms of market practices; products and technologyhave become industry benchmarks and are being replicated by many othermarket participants.NSE has four broad segments Wholesale Debt Market Segment (commencedin June 1994), Capital Market Segment (commenced in November 1994)Futures and Options Segment (commenced June 2000) and the CurrencyDerivatives segment (commenced in August 2008). Various products whichare traded on the NSE include, equity shares, bonds, debentures, warrants,exchange traded funds, mutual funds, government securities, futures andoptions on indices & single stocks and currency futures. Thousands of investors rely on the NSE’s accessible, liquid and transparent markets fororder execution. Each day over 7 million trades take place on the NSE.Average daily turnover exceeds Rs. 60,000 crores (US $ 12 billion). 1000+broker members (trading members) of NSE are spread across India. TodayNSE’s share to the total equity market turnover in India averages around71% whereas in the futures and options market this share is around 99%.At NSE, it has always been our endeavour to continuously upgrade the skillsand proficiency of the Indian investor. Since, mutual funds play a crucial rolein channelising the savings of investors, it becomes important to understandhow they function. Mutual funds offer various products catering to differentclasses of investors. It is important to understand them before investing.This module has been developed for those of you who are keen to acquiresome basic but key information about mutual funds as an initial step towardsbecoming a more informed investor. We hope this module will act as a meansof satisfying some of your initial queries on mutual funds.This book has developed with the assistance of M/s Money Bee Institutewhose details are provided below:
Money Bee Institute
"Yashashree"Sudarshan SBI Officer's Society,Hindustan Colony, Amravati Road,Nagpur – 440010. (Tel nos : 9860641317 / 9967654979)Email :moneybee.finplan@gmail.com
 
 
2
CONTENTSCHAPTER 1......................................................................................5
 
MUTUAL FUNDS ...............................................................................5
 
1.1
 
INTRODUCTION..........................................................................................5
 
1.2
 
MUTUAL FUNDS : STRUCTURE IN INDIA.........................................................7
 
1.3
 
WHO MANAGES INVESTOR’S MONEY?...........................................................7
 
1.4
 
WHO IS A CUSTODIAN?...............................................................................8
 
1.5
 
WHAT IS THE ROLE OF THE AMC?..................................................................9
 
1.6
 
WHAT IS AN NFO?......................................................................................10
 
1.7
 
WHAT IS THE ROLE OF A REGISTRAR AND TRANSFER AGENTS?.......................10
 
1.8
 
WHAT IS THE PROCEDURE FOR INVESTING IN AN NFO?..................................10
 
1.9
 
WHAT ARE THE INVESTOR’S RIGHTS & OBLIGATIONS?...................................12
 
CHAPTER 2....................................................................................14
 
MUTUAL FUND PRODUCTS AND FEATURES – EQUITY FUNDS ...........14
 
2.1
 
WHAT ARE OPEN ENDED AND CLOSE ENDED FUNDS?....................................14
 
2.2
 
WHAT ARE EQUITY FUNDS?.........................................................................15
 
2.2.1
 
Salient Features
.....................................................................................................15
 
2.2.2
 
Equity Fund Definition
........................................................................................15
 
2.3
 
WHAT IS AN INDEX FUND?..........................................................................16
 
2.4
 
WHAT ARE DIVERSIFIED LARGE CAP FUNDS?................................................17
 
2.5
 
WHAT ARE MIDCAP FUNDS?........................................................................18
 
2.6
 
WHAT ARE SECTORAL FUNDS?....................................................................18
 
2.7
 
OTHER EQUITY SCHEMES :..........................................................................19
 
2.7.1
 
Arbitrage Funds
......................................................................................................19
 
2.7.2
 
Multicap Funds
........................................................................................................19
 
2.7.3
 
Quant Funds
.............................................................................................................19
 
2.7.4
 
P/ E Ratio Fund
.......................................................................................................19
 
2.7.5
 
International Equities Fund
.............................................................................20
 
2.7.6
 
Growth Schemes
....................................................................................................20
 
2.7.7
 
ELSS
..............................................................................................................................21
 
2.7.8
 
Fund of Funds
..........................................................................................................21
 
2.8
 
WHAT IS AN ENTRY LOAD?..........................................................................21
 
2.9
 
WHAT IS EXPENSE RATIO?..........................................................................25
 
2.10
 
WHAT IS PORTFOLIO TURNOVER?................................................................25
 
2.11
 
HOW DOES AUM AFFECT PORTFOLIO TURNOVER? .........................................26
 
2.12
 
HOW TO ANALYSE CASH LEVEL IN PORTFOLIOS?...........................................27
 
2.13
 
WHAT ARE EXIT LOADS?.............................................................................27
 

Activity (3)

You've already reviewed this. Edit your review.
1 thousand reads
1 hundred reads
Paul Hansen liked this

You're Reading a Free Preview

Download
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->