Republic of the Philippines

City of Olongapo
GORDON COLLEGE
Olongapo City Sports Complex, East Tapinac, Olongapo City
Tel. No. (047) 224-2089 loc. 314

College of Business and Accountancy

Program: Bachelor of Science in Financial Management

Course Code: FIN 108

Course Title: Mutual Fund

Course Description:

Over the past decades mutual funds have grown intensely in popularity and have experienced a
considerable growth rate. Mutual funds are popular because they make it easy for small investors to
invest their money in a diversified pool of securities. As the mutual fund industry has evolved over
the years, there have arisen many questions about the nature of operations and characteristics of these
funds.

This e-learning course on ‘Mutual Funds’ provides an in-depth coverage of the mutual fund industry
and its operations in an interactive format. It is intended to familiarize you with the basic concepts
related to mutual funds. The course first provides the fundamentals, explaining what mutual funds are
and how they work. The course provides an overall understanding of how equity and bond fund
portfolios are managed. Various factors surrounding the performance of mutual funds are then
highlighted along with a brief of various standardized performance systems. Finally, the course
depicts the recent trends in the mutual funds industry.

Course Learning Outcomes:

1. Understand the role of mutual funds,

2. Understand the concept of different mutual funds.
3. Study the objectives of mutual funds in the process of decision-making of different
business organizations.
4. Critical analyze how mutual funds affect our economy in macro-level of perspective.
5. Distinguish various types of mutual fund products
6. Learn about the management of equity fund portfolio. Risks and Returns of different asset
classes.

Grading Rubric:
 Republic of the Philippines
City of Olongapo
GORDON COLLEGE
Olongapo City Sports Complex, East Tapinac, Olongapo City
Tel. No. (047) 224-2089 loc. 314

Midterm:
Research Papers and Activities - 40%
Midterm Examination - 30%
Quizzes - 30%
Finals:
Research Papers and Activities - 40%
Midterm Examination - 30%
Quizzes - 30%

Learning Module

Te
ach
ing
an
d
Le
Learning arn
Module Objectives (most ing Lear
Topics and Key
Number   essential Ma ning
Concepts
and Title learning teri Task
competencies) als
an
d
Re
sou
rce
s
Essa
To understand the Introduction of
Module 1   y
introduction Mutual Funds
  and
Rese
arch
  Introduction of mutual funds    
Wor
k
           
           
           
Essa
Module 2   Definition Definition   y
and
Rese
arch
  Mutual Funds: What are they? Origin of Funds Origin of Funds  
Wor
k
 Republic of the Philippines
City of Olongapo
GORDON COLLEGE
Olongapo City Sports Complex, East Tapinac, Olongapo City
Tel. No. (047) 224-2089 loc. 314

           
           
           
           
           
Essa
History of mutual History of mutual
Module 3 Mutual Fund Industry   y
fund industry fund industry
and
Rese
Mutual fund Mutual fund
arch
    industry in the industry in the  
Wor
Philippines Philippines
k
Impetus to Equity Impetus to Equity
       
Market Market
Evolution of Evolution of
mutual fund mutual fund
       
industry in the industry in the
Philippines Philippines
Essa
Concept and role of mutual Concepts and role Concepts and role
Module 4   y
fund of mutual funds of mutual funds
and
Rese
arch
         
Wor
k
           
           
           
           
Essa
Mutual fund investing v/s Pass-through Pass-through
Module 5   y
investing through banks structure structure
and
Rese
Investors may Investors may
arch
    lose money in a lose money in a  
Wor
mutual fund mutual fund
k
           
Essa
Mutual funds vs Mutual funds vs
Module 6 Unit holders are shareholders   y
direct investing direct investing
and
Rese
Benefits of Benefits of
arch
    mutual fund mutual fund  
Wor
investing investing
k
Professional Professional
    Investment Investment    
Management Management
 Republic of the Philippines
City of Olongapo
GORDON COLLEGE
Olongapo City Sports Complex, East Tapinac, Olongapo City
Tel. No. (047) 224-2089 loc. 314

Law of Large Law of Large

       
Numbers Numbers
Risk Reduction Risk Reduction
    Through Through    
Diversification Diversification
Market Risk and Market Risk and
       
Unique Risk Unique Risk
Availability of Availability of
    Varied Portfolio Varied Portfolio    
Objectives Objectives
    Convenience Convenience    
Unit Holders Unit Holders
Account Account
       
Administration Administration
and Services and Services
Reduction in Cost Reduction in Cost
       
of Investment of Investment
    Transparency Transparency    
           
           
Structure of Structure of Essa
Organizational structure of
Module 7 mutual funds in mutual funds in   y
mutual fund
the Philippines the Philippines and
Rese
arch
         
Wor
k
           
           
Module 8 Mutual Fund as Investment        
           
           
Types and Classification of
Module 9 Mutual Funds By Structure By Structure    
By Investment By Investment
    Objective Objective    
    Other Schemes Other Schemes    
Dealing in Dealing in
Module Scope and Functions of Mutual Capital Market Capital Market
10 Funds Instruments Instruments    
Maintenance of Maintenance of
Management Management
Information Information
    System System    
Professional Professional
Management at Management at
    low cost low cost    
 Republic of the Philippines
City of Olongapo
GORDON COLLEGE
Olongapo City Sports Complex, East Tapinac, Olongapo City
Tel. No. (047) 224-2089 loc. 314

Module Mutual Fund Pricing (NAV

11 Calculation Process)        
Module Who can buy mutual funds
12 units?        
Risk Associated with Mutual
Fund and It Is Mitigated Risk
Module and Advantage and
13 Disadvantage Risk Mitigation Risk Mitigation    
 Republic of the Philippines
City of Olongapo
GORDON COLLEGE
Olongapo City Sports Complex, East Tapinac, Olongapo City
Tel. No. (047) 224-2089 loc. 314

DETAILED LEARNING MODULE

Title: Introduction to Mutual Funds

Module No. 1

I. Introduction

Mutual funds pool money from the investing public and use that money to buy other
securities, usually stocks and bonds. The value of the mutual fund company depends on the
performance of the securities it decides to buy. So, when you buy a unit or share of a mutual fund, you
are buying the performance of its portfolio or, more precisely, a part of the portfolio's value. Investing
in a share of a mutual fund is different from investing in shares of stock. Unlike stock, mutual fund
shares do not give its holders any voting rights. A share of a mutual fund represents investments in
many different stocks (or other securities) instead of just one holding.

II. Learning Objectives

After studying this module, you should be able to:
1. To understand and learn introduction of mutual funds.

III. Topics and Key Concepts

a. Introduction

The economic progress of a company is, to a certain extent, linked with the growth of the
capital market. Capital market growth depends on the savings of the nation. In
Philippines, notwithstanding a high rate of savings by the community, the capital market
is not in a position to grow fast because the common man has not acquired the necessary
know-how himself to select appropriate avenues of investment which will serve his
needs. Therefore, the savings are mainly directed towards bank deposits/real estate/gold
etc. if he is assured that there are organizations of repute which have necessary expertise
to select appropriate avenues of investment where the yield is attractive enough, with
utmost security of the capital invested, it would create a proper climate for diversion of a
part of the savings which at present goes into sectors where there is either only capital
appreciation but with little or no scope for regular periodical return on investment or on
capital appreciation at all, but with periodical small return on the investment.

In these circumstances, there is enough scope for mutual funds to operate, which would
not only assure a reasonable capital appreciation on his investment but also provide a
regular dividend at periodical intervals with also a facility for easy encashment of the
principal.

IV. Teaching and Learning Materials and Resources

a. www.google.com
 Republic of the Philippines
City of Olongapo
GORDON COLLEGE
Olongapo City Sports Complex, East Tapinac, Olongapo City
Tel. No. (047) 224-2089 loc. 314

b. www.yahoo.com
c. www.economictimes.com
d. www.wikipedia.com
e. www.SEC.com
f. www.managementparadise.com
g. www.scribd.com

V. Learning Task
Kindly create reflection paper about what you have learn on this module.