MUTUAL FUNDS

By
Bhuvnesh Kumar
19BCOM04
 INDEX
• What is Mutual Funds?
• Features of Mutual Funds
• Types of Mutual Funds
 WHAT IS MUTUAL FUNDS?

• A mutual fund is a pool of money managed by a professional Fund Manager.

• It is a trust that collects money from a number of investors who share a common
investment objective and invests the same in equities, bonds, money market
instruments and/or other securities.
• And the income / gains generated from this collective investment is distributed
proportionately amongst the investors after deducting applicable expenses and levies,
by calculating a scheme’s “Net Asset Value” or NAV. 
 FEATURES OF MUTUAL FUNDS

• Expert Money Management

• Your pooled money is managed by a team of experts. So, you have the advantage of expert
guidance in creating wealth. The fund manager does meticulous research in deciding equities,
sectors, allocation, and of course the buy and sell.
• Low Cost
• If you calculate the benefits of expertise, diversity, and other options of return, then mutual funds
are definitely a very cost-effective instrument of investment.
• SIP Option
• Systematic Investment Plan gives you the flexibility to invest at an agreed interval which could
be weekly, monthly, quarterly. You can start investing in mutual funds with an amount as low as
Rs. 500.
• Switch Funds
• If you are not happy with the performance of a particular mutual fund scheme, then some mutual
funds do offer you an option to switch funds.
• Ease of Investing and Redemption
• Now, it is pretty easy to buy, sell, and redeem fund units at NAV. Just place the redemption
request and you will get your money in the desired bank account within a few days.
• Tax Benefit
• Under the Equity linked savings scheme, in the tax-saving mutual fund you have the double
benefit of tax saving and wealth creation. Under Section 80C of the Income Tax Act, you can
have a deduction of a maximum of Rs. 1,50,000 a year.
TYPES OF MUTUAL FUNDS
MUTUAL FUNDS BASED ON INVESTMENT
 HYBRID FUNDS

• Hybrid Funds are the fund which invest in more than one asset class i.e. equity, debt
and other asset classes depending on the investment objective of the scheme.
• These funds invest in a mix of different asset classes to diversify the portfolio with an
aim to minimize the risk involved.
 DEBT FUNDS

• In debt funds, the funds are mainly invested in government or corporate securities &
bonds.
• Here investments can be short- term or long term, and you will get the fixed returns with
lower risk.
• To save on tax in long-term investments, you can avail the tax benefits.
 INDEX FUNDS
• Index funds are designed to
replicate(copy something exactly) the
portfolio of the market index.
• You don’t need to aggressively monitor
them.
GILT FUNDS
• Investment is completely in government
securities, where there is no risk involved
by default.
• The value of gilt funds units is dictated
by the market volatility(degree of
valuation).
THANKS FOR LISTENING