Mutual Fund, BID, FII, First

Mover Advantage & Motion Study

By Pratham Yadav
Mutual Fund
A mutual fund is a common pool of money into which investors place their
contributions that are to be invested in different types of securities in
accordance with the stated objective. An equity fund would buy equity
assets – ordinary shares, preference shares, warrants etc. A bond fund
would buy debt instruments such as debenture bonds, or government
securities/money market securities. A balanced fund will have a mix of
equity assets and debt instruments. Mutual Fund shareholder or a unit
holder is a part owner of the fund’s asset.
Myths about Mutual Funds

1. Mutual Funds invest only in shares.

2. Mutual Funds are prone to very high risks/actively traded.
3. Mutual Funds are very new in the financial market.
4. Mutual Funds are not reliable and people rarely invest in them.
5. The good thing about Mutual Funds is that you don’t have to pay
attention to them.
Facts about Mutual Funds

1. Equity Instruments like shares are only a part of the securities held by mutual funds.
Mutual funds also invest in debt securities which are relatively much safer.
2. Mutual Funds are there in India since 1964. Mutual Funds market has evolved in
U.S.A and is there for the last 60 years.
3. Mutual Funds are the best solution for people who want to manage risks and get
good returns.
Advantages of Mutual Funds
1. Portfolio diversification: It enables him to hold a diversified investment portfolio even with a
small amount of investment like Rs. 2000/-.
2. Professional management: The investment management skills, along with the needed research
into available investment options, ensure a much better return as compared to what an investor
can manage on his own.
3. Reduction/Diversification of Risks: The potential losses are also shared with other investors.
4. Reduction of transaction costs: The investor has the benefit of economies of scale; the funds
pay lesser costs because of larger volumes and it is passed on to the investors.
5. Wide Choice to suit risk-return profile: Investors can chose the fund based on their risk
tolerance and expected returns.
Disadvantages of Mutual Funds
1. No control over costs: The investor pays investment management fees as long as he remains with
the fund, even while the value of his investments are declining. He also pays for funds distribution
charges which he would not incur in direct investments
2. No tailor-made portfolios: The very high net-worth individuals or large corporate investors may
find this to be a constraint as they will not be able to build their own portfolio of shares, bonds and
other securities.
3. Managing a portfolio of funds: Availability of a large number of funds can actually mean too much
choice for the investor. So, he may again need advice on how to select a fund to achieve his
objectives.
4. Delay in redemption: It takes 3-6 days for redemption of the units and the money to flow back into
the investor’s account.
 BID
BID is an offer made on goods or services. Most associate bids with auctions,
but a bid can also be made on...A bid is the amount you're willing to pay per
click, per thousand impressions, or per acquisition.

This is a process where you bid on your choice of Adwords, keywords or

keyword phrases, depending on how much you can afford and how effective the
word is. The Purpose is to get your product or service at the top of ads
advertised in various websites.You have the option to increase your Cost Per
Click (CPC), Pay Per Click (PPC), or Cost Per Action (CPA.)
Maximum CPC or CPM bid represents the highest amount that you're willing to pay per click or
thousand impressions, respectively, on your ad•Set a bid at the ad group level, or for individual
keywords and placements•If you don't specify a maximum CPC or CPM bid for a given keyword or
placement, the ad group maximum CPC or CPM bid will automatically apply•If you have both
keyword-level and placement-level bids within an ad group, and an ad shows on one of the placements
for which you've set a bid, the placement bid applies•Your maximum CPC bid must be at least
US$0.01. Your maximum CPM bid must be at least$0.25
 Motion Study
Motion study can be considered the foundation for time study. The
time study measures the time required to perform a given task in
accordance with a specified method and is valid only so long as the
method is continued. Once a new work method is developed, the
time study must be changed to agree with the new method
❖ Motion study offers a great potential for savings in any area of human effort. We can reduce the cost by
combining elements of one task with elements of another.

❖ Motion study uses the principles of motion economy to develop work stations that are friendly to the
human body and efficient in their operation.

Motion studies are used to

1. Develop the best work method.

2. Develop motion consciousness on the part of all employees.
3. Develop economical and efficient tools, fixtures, & production aids.
4. Assist in the selection of new machines and equipment.
5. Train new employees in the preferred method.
6. Reduce effort and cost.
First Mover
Advantage
A first-mover advantage can be simply defined as a firm’s ability to be better off than its competitors
as a result of being first to market in a new product category.

Pioneering new markets is expensive and risky, but potentially very rewarding because market pioneers enjoy advantages
based on early market entry.

Pioneers are more likely to:

–Have high market share,

–Survive longer

–Be market leaders in their product category

The logic of success is not to be first to enter the market, but to strive for market leadership by scanning
opportunities, building on strengths, and committing resources to customers effectively.

d va n ta ge d oe s n 't go to the
“First mover A o e s to th e company
ts up , it g
company that star
that scales up.” ~Reid Hoffman
FII
Foreign Institutional investor means “an institution
established or incorporated outside India which proposes
to make an investment in India in securities
It is used most commonly in India to refer to outside
companies investing in the financial markets of India
HOW FII STARTED IN INDIA ?

INDIA opened its stock market to foreign investors in September 1992. Since 1993, received
portfolio investment from foreigners in the form of foreign institutional investment in
equities.

This has become one of the main channels of FII in India for foreigners. IN order to trade in
the Indian equity market foreign corporations need to register with SEBI as foreign
Institutional Investor FII
Where FII can Invest?

Current financial instruments are available for FII investments

Securities in primary and secondary markets including shares, debentures and
warrants of companies, unlisted, listed or to be listed on a recognized stock exchange in
India;

1. Units of mutual funds

2. Dated Government Securities
3. Derivatives traded on a recognized stock exchange
4. Commercial papers
Why there is need of FII ?
FII flows supplements and augmented domestic savings and domestic investment without increasing the foreign debt of our
country
Capital inflows to the equity market increase stock prices, lower the cost of equity capital and encourage the investment by
Indian firms
The expert group opines that FII inflows have some savings like features
Impact Of FIIs On Indian Markets

In the past four years there has been more than $41 trillion worth of FII funds
invested in India.
This has been one of the major reasons on the bull market witnessing
unprecedented growth with the BSE Sensex rising 221% in absolute terms in
this span.
downfall of the market too is influenced as these FIIs are taking out some of
their invested money.
THANK YOU