Assignment

 College Name - Government First Grade Degree College

Humanad Dist - Bidar

 Course Name - Bachelor of Business Management

 Semester - 5th Semester
 Guided By – Prof Mallikarjun Bali ,Head of Department B.B.M.
Prof Goutam Chakravrti
 Assignment Done By –
Pavan Tukaram
Reg No. M2040089
Sainath Ishwar
Reg No. M2040090

 Topic - Mutual Fund

 MUTUAL FUND

INTRODUCTION TO MUTUAL FUNDS WHAT ARE MUTUAL

FUNDS?
 A mutual fund is a collective investment vehicle that collects & pools money from a number of
investors and invests the same in equities, bonds, government securities, money market
instruments.
  The money collected in mutual fund scheme is invested by professional fund managers in
stocks and bonds etc. in line with a scheme’s investment objective. The income / gains
generated from this collective investment scheme are distributed proportionately amongst
the investors, after deducting applicable expenses and levies, by calculating a scheme’s “Net
Asset Value” or NAV. In return, mutual fund charges a small fee.

 In short, mutual fund is a collective pool of money contributed by several investors and
managed by a professional Fund Manager.

 Mutual Funds in India are established in the form of a Trust under Indian Trust Act, 1882, in
accordance with SEBI (Mutual Funds) Regulations, 1996.

 The fees and expenses charged by the mutual funds to manage a scheme are regulated and
are subject to the limits specified by SEBI.

HOW A MUTUAL FUND WORKS?

 One should avoid the temptation to review the fund's performance each time the market falls
or jumps up significantly. For an actively-managed equity scheme, one must have patience
and allow reasonable time - between 18 and 24 months - for the fund to generate returns in
the portfolio.

 When you invest in a mutual fund, you are pooling your money with many other investors.
Mutual fund issues “Units” against the amount invested at the prevailing NAV. Returns from a
mutual fund may include income distributions to investors out of dividends, interest, capital
gains or other income earned by the mutual fund. You can also have capital gains (or losses) if
you sell the mutual fund units for more (or less) than the amount you invested.

Mutual funds are ideal for investors who –

 lack the knowledge or skill / experience of investing in stock markets directly.
  want to grow their wealth, but do not have the inclination or time to research the stock
market.
 wish to invest only small amounts.

WHY INVEST IN MUTUAL FUNDS?

As investment goals vary from person to person – post-retirement expenses, money for children’s
education or marriage, house purchase, etc. – the investment products required to achieve these
goals too vary. Mutual funds provide certain distinct advantages over investing in individual
securities. Mutual funds offer multiple choices for investment across equity shares, corporate bonds,
government securities, and money market instruments, providing an excellent avenue for retail
investors to participate and benefit from the uptrends in capital markets. The main advantages are
that you can invest in a variety of securities for a relatively low cost and leave the investment
decisions to a professional manager.
Scope of Mutual Fund
A mutual fund is a company that pools investors’ money to make multiple types of investments,
known as the portfolio.

Stocks, bonds, and money market funds are all examples of the types of investments that may make
up a mutual fund. “A Mutual Fund is an ideal investment vehicle where a number of investors come
together to pool their money with common investment goal.

Each Mutual Fund with different type of schemes is managed by respective Asset Management
Company (AMC). An investor can invest his money in one or more schemes of Mutual Fund according
to his choice and becomes the unit holder of the scheme.

The invested money in a particular scheme of a Mutual Fund is then invested by fund manager in
different types of suitable stock and securities, bonds and money market instruments.

Each Mutual Fund is managed by qualified professional man, who use this money to create a portfolio
which includes stock and shares, bonds, gilt, money-market instruments or combination of all. Thus
Mutual Fund will diversify your portfolio over a variety of investment vehicles. Mutual Fund offers an
investor to invest even a small amount of money.

Everyone has dreams and goals—a new car, a bigger house, a family vacation to an exotic destination,
and so on. But it is possible to achieve your dreams only if you work actively towards them. Investing
in mutual funds through a Systematic Investment Plan (SIP) can be a simple way to help you achieve
your goals. So, let’s look into the meaning of SIP, how they work, and how they can benefit you.

SYSTEMATIC INVESTMENT PLAN(SIP) IN MUTUAL FUND

 What is SIP?
A Systematic Investment Plan (or SIP) is an investment mode through which you can invest in mutual
funds. As the term indicates, it is a systematic method of investing fixed amounts of money
periodically. This can be monthly, quarterly or semi-annually etc. When you invest steadily in this
manner, it can become easier to meet your financial goals.

 How does SIP work

When you invest through a SIP, you invest a fixed sum of money in a given period. This amount lets
you purchase a certain number of fund units. If you continue to do this for a long time, you get to
invest in the fund during the highs and lows. In other words, you don’t need to time the market to
make your investments. Market timing can be a risky proposition as one can invest at the wrong time.
SIP investments remove this factor of unpredictability.

Having decided on the investment tenure and frequency, you can choose to automate your
investments. Give a standing instruction to your bank to transfer the amount directly from your bank
account into the mutual fund SIP of your choice, on a fixed date every month (or quarter) etc..
 BEST SERVICE PROVIDER’S TO INVEST ONLINE IN
MUTUAL FUND IN INDIA

1. SBI MUTUAL FUND

2. KOTAK MAHINDRA MUTUAL FUND
3. ICICI PREDUNTIAL MUTUAL FUND
4. HDFC MUTUAL FUND
5. ADITYA BIRLA SUN LIFE MUTUAL FUND
6. NIPPON INIDA MUTUAL FUND
7. AXIS MUTUAL FUND
8. IDFC MUTUAL FUND
9. UTI MUTUAL FUND
10. DSP MUTULA FUND

 BEST ANDROID AND IOS APPLICATION’S TO INVEST IN MUTUAL FUND

THROUGH ONLINE .

1. GROWW
2. COIN BY ZERODHA
3. Paytm Money
4. Cash Rich
5. Kuvera
6. ET Money