PRESENTATION ON TYPES OF

INVESTORS
BY : PRERNA VERMA
 INTRODUCTION

An investor is a person who allocates capital with the

expectation of a future financial return. There are certain
types of investments which include equity, debt securities,
commodity and derivatives market etc.
Any person who provides a business with capital and someone
who buys a stock are both investors. Investors utilize
investments in order to grow their money or provide an
income during retirement, such as with an annuity.
 TYPES OF INVESTORS

INSTITUTIONAL
INVESTOR

TYPES OF MUTUAL
RETAIL FUNDS
INVESTOR INVESTORS

FOREIGN
INVESTOR
 TYPES OF INVESTORS
 INSTITUTIONAL INVESTOR: An institutional investor is a non bank person
or organisation that trades securities in large enough share quantities or
dollar amounts that it qualifies for preferential treatment and lower
commisions.

• Institutional Investors are large institutions that trade securities in the

market in large quantities on behalf of their investors.
• The number of investors in such an entity is large, the size of the traders is
automatically large and able to enjoy preferential treatment and lower
commissions in the market as compared to retail investors.
 TYPES OF INSTUTUTIONAL INVESTORS

Hedge Funds

Institutional Endowment
Mutual Funds Funds
Investors

Private
Equity Funds
• HEDGE FUNDS: This type of institutional investors are investment funds
that pool in money from various investors and invest on their behalf. They
are usually structured as limited partnerships with the fund manager
acting as General partner and investor acting as the Limited partner.
They invest mostly in Liquid assets. They often takes along and short
position or a hedged position in securities.
• MUTUAL FUNDS: Mutual funds are the pooled investment vehicles
that buy securities with the capital pooled in by multiple investors. The
main advantage of mutual funds are that they are professionally
managed. The investments are done in liquid assets.
• PRIVATE EQUITY FUNDS: Private equity funds are pooled invesment
vehicles with a structure of a limited Partnership and a fixed term of
usually 10 years. These funds provide equity financing to private entities
that are unable to raise capital from the public. These investments are
illiquid in nature.
These funds carry high risk and therefore investors expect higher returns
on investment .
• ENDOWMWENT FUNDS
This type of investors is investment pools established by a
group of founders or principals for specific needs or for the
general operating process of an entity. They often take the
form of non- profit organizations and foundations.
 RETAIL INVESTOR: A retail investor is an individual who purchases
securities for his or her own personal account rather than for an
organization. Retail investors typically trade is much smaller
amounts than institutional investors such as mutual funds,
pensions.
 FOREIGN INSTITUTIONAL INVESTOR: Foreign Institutional Investor
means an institution established or incorporated outside India
which proposes to make investment in securities in India. They are
registered as FIIs in accordance with Section 2 (f) of the SEBI (FII)
Regulations 1995.
 MUTUAL FUNDS: A mutual fund is an investment security that
enables investors to pool their money together into once
professionally managed investment. Mutual funds can invest in
stocks, bonds, cash or a combination of those assets.
A mutual fund is an investment security that enables investors to
pool their money together into one professionally managed
investment. Mutual funds can invest in stocks,bonds, cash or
combination of those assests.