AN OVERVIEW OF MUTUAL

FUND
& INDIAN EQUITY MARKET
 INTRODUCTION
@ WHY ONE NEED TO INVEST?????

@ INVESTMENT VEHICLE

@ THREE GOLDEN RULES FOR INVESTORS

 History

 First Phase – 1964-87

 Second Phase – 1987-1993
 Third Phase – 1993-2003
 Fourth Phase – since February 2003
Concept of Mutual Fund
Types Of Mutual Funds:
Based on their structure:

 Open-ended funds: Investors can buy and sell the units

from the fund, at any point of time.

 Close-ended funds: These funds raise money from

investors only once. Therefore, after the offer period,
fresh investments can not be made into the fund. If
the fund is listed on a stocks exchange the units can
be traded like stocks
 Based on their investment objective :

 Index funds

 Equity diversified funds

 Dividend yield funds

 Thematic funds

 Sector funds-

 ELSS

 Balanced fund
 ADVANTAGES OF MUTUAL FUND

 Portfolio Diversification
 Professional management
 Reduction / Diversification of Risk
 Liquidity
 Flexibility & Convenience
 Choice of schemes
 Transparency
 
 DISADVANTAGES OF MUTUAL FUND

 No control over Cost in the Hands of an

Investor

 No tailor-made Portfolios

 No Guarantee of Returns

 Difficulty in selecting a Suitable Fund Scheme

RECENT DEVELOPMENT AND
FUTURE SCENARIO
Indian Equity market
 Concept

 Lucrative field

 Market capitalization

 22 Stock Exchanges
2 major stock indices
 Bombay Stock Exchange

 Oldest stock exchange in Asia

 The Native Share & Stock Brokers Association

 Index of 30 stocks

 Market capitalization

 4,700 listed companies

 National Stock Exchange
 Incorporated in November 1992

 Market capitalization

 Third largest Stock Exchange in the world

 Represents 24 different sectors of the economy

 NSE has the following major segments of the capital market

Equity

Futures and Options

Retail Debt Market

Wholesale Debt Market

Currency futures
 Why investors loose money?
 You Don’t Sell
 Winning Stocks Turn into Losers
 You Get Too Emotional
 Only One or Two Stocks
 Disciplined and Flexible
 Learn from Your Mistakes
 Tips from the Wrong People
 Follow the Crowd
 Not Prepared for the Worst
 Mismanage Money
THANK YOU