SECURITY ANALYSIS

&PORTFOLIO MANGEMENT

TYPES OF MUTUAL FUNDS

PRESENTED BY
M INDRAJA
15331E0075
 CONTENTS

• INTRODUTION TO MUTUAL FUNDS

• TYPES OF MUTUAL FUNDS
– On the basis of lock in period
– On the basis of investment
– Other funds
 MUTUAL FUNDS: INTRODUTION

• Mutual Fund is an investment house where investor

pools in money for investment in a basket of diversified

assets, managed by professionals at relatively low cost.

 INTRODUTION

• The funds collected are invested in various instruments such as

capital market, money market and debt market instruments.

• The investors get units in numbers on their investment

 TYPES OF MUTUAL FUND

On the basis of lock in period On the basis of investment

• Open ended funds • EQUITY
• Closed ended funds • ELSS
• DEBT
• BALANCED
• SECTORAL
 ON THE BASIS OF LOCK-IN PERIOD

MUTUAL FUND

OPEN-ENDED CLOSED-ENDED
 OPEN ENDED MUTUAL FUNDS
• Any time entry and exit
• Liquidity can be maintained by investing in open
ended funds
• Difficult to manage the funds, as the money flows in
and out, so the total funds get changed frequently
• The units are brought and sold at NAV
 CLOSED-ENDED MUTUAL FUNDS

• Minimum lock in period of 3 years

• Short term returns are not possible
• Number of units do not fluctuate on daily basis
• Hence the number of units also remains same except
through bonus or right issue
• A new investor can buy units of close ended funds
through secondary market
 ON THE BASIS OF INVESTMENT

EQUITY

ELSS

MUTUAL FUNDS DEBT

BALANCED

SECTORAL
 EQUITY BASED MUTUAL FUND
• A mutual fund that invests principally in stocks
• A minimum of 65% of total investment should be
in Indian equity
• It includes various types such as

LARGE CAP: Investment in companies

having market capitalization more than
$10 billion.
MID CAP: Investment in companies
having market capitalization between
$2 billion to $10 billion.
 DEBT BASED MUTUAL FUNDS
It includes different types of schemes such as
• Gilt Funds:
These funds invest exclusively in government
securities.
Government securities have no default risk.
• CORPORATE BONDS: For example ICICI
prudential corporate bond fund
• COMBINED: This better than the above two
because investment only guilt securities may
not even cover the inflation cost
 Balanced Fund

• It is a balanced fund of Equity and Debt

• The investment is done in both equity and
debt
• For tax benefit investment in Indian equity
should account for 65%
 ELSS FUND
• ELSS is a type of diversified equity mutual fund
• Qualified for tax exemption under 80C
• Investment up to 150000 are exempted under
this section
• It is usually comes with a lock in period of 3
years
 SECTORAL FUNDS

• Investments is done in stocks of a particular

sector
• This funds have high risk but also give high
returns
 OTHER FUNDS
• International funds
• Quant funds
• Arbitrage funds
THANK YOU