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Mutual Funds: Ankit Gupta Ajit Chaurasia Deepti Singh
Mutual Funds: Ankit Gupta Ajit Chaurasia Deepti Singh
Presented By:
Ankit Gupta
Ajit Chaurasia
Deepti Singh
OVERVIEW OF MUTUAL FUND
A Mutual Fund is a trust that pools the savings of a number of
NOTE: SEBI Regulations stipulate that at least one of the two exit routes is provided to
the investor i.e. either repurchase facility or through listing on stock exchanges. These
mutual funds schemes disclose NAV generally on weekly basis.
2. Schemes according to Investment Objective:
Balanced Fund
Gilt Fund
Index Funds
G-Sec funds
Moderate risk Income funds
Balanced funds
High risk Index funds
Growth funds
Sector funds
ASSOCIATION OF MUTUAL FUNDS IN INDIA
Association of Mutual Funds in India (AMFI) was incorporated on
22nd August, 1995.
Liquidity
Section 10(38):
Personal Selling
Telemarketing
Direct mail
Advertisements in newspapers and magazines
Hoardings and Banners
Internet
Joint Calls
CHALLENGES AND OPPORTUNITIES:
Assessing the needs of the investors;
Expanding the customer base;
Responding to investors needs;
Studying the macro environment;
Choosing the distribution network;
Finalizing strategies for publicity and
advertisement;
Preparing offer documents and other literature;
Getting feedback about sales;
Studying performance indicators about fund
performance like NAV;
Sending certificates in time and other after
sales activities;
Honoring the commitments made for
redemptions and repurchase;
Paying dividends and other entitlements;
Creating positive image about the fund;
Spreading awareness about mutual funds;
Creating new markets for mutual funds.
LATEST TRENDS OF MUTUAL
FUNDS IN INDIA
The recent trends since last year clearly suggest that the
average investors have lost money in equity. People have
now started opting for portfolio managers.
Entrance of multinational companies.
Professional expertise to manage funds worldwide.
Mutual funds in India now offer a wide range of schemes
to choose.
Mutual funds are turned to be the most preferred choice
worldwide for both small and big investors due to their
numerous advantages which include diversification,
professional management, potential of returns, efficiency
and easy to use.
Assets Under Management (AUM)
AUM is a term used by financial services
companies in the mutual fund, hedge fund, and
money management, investment management,
wealth management, and private banking
businesses to gauge how much money they are
managing. Many financial services companies
use this as a measure of success and
comparison against their competitors.
Benefits Of Investing In Mutual
Funds
Easy to buy and sell.
Investments can be made in lump sum or
periodic payments (easy on the pocket).
Mutual fund industry in India is very well
regulated and transparent.
Professional management - saves time, costs
and reduces risk.
Diversification - to protect from downside risk.
How to choose a fund for investing?
Expense Ratio: Denotes the annual expenses of the funds,
including the management fee and administrative cost. Lower
expense ratio is better.
Sharpe Ratio: An indicator of whether an investment's return
is due to smart investing decisions or a result of excess risk.
Higher Sharpe Ratio is better
Alpha Ratio: Measures risk relative to the market or
benchmark index. For investors, the more positive an alpha is,
the better it is.
R-squared: Measures the percentage of an investment's
movement that are attributable to movements in its benchmark
index. A mutual fund should have a balance in R-square
and ideally it should not be more than 90 and less
than 80.
ASSOCIATION OF MUTUAL FUNDS IN
INDIA