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    Mutual Funds: Presented By-Preeti Mathur MBA (FT) Sec-A Roll No. 06619103909

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    Preeti Mathur
    This document provides an overview of mutual funds. It defines mutual funds as a professionally managed collective investment scheme that pools money from many investors to invest in stocks. The Security Exchange Board of India (SEBI) regulates all mutual funds in India to protect investors. Mutual funds offer benefits like small investments, professional management, risk spreading, transparency, choice and liquidity. There are various types of mutual funds categorized by structure (open-ended, close-ended, internal) and nature (equity, debt, balanced).

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    Mutual Funds: Presented By-Preeti Mathur MBA (FT) Sec-A Roll No. 06619103909

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    Preeti Mathur
    19 views15 pages
    This document provides an overview of mutual funds. It defines mutual funds as a professionally managed collective investment scheme that pools money from many investors to invest in stocks. The Security Exchange Board of India (SEBI) regulates all mutual funds in India to protect investors. Mutual funds offer benefits like small investments, professional management, risk spreading, transparency, choice and liquidity. There are various types of mutual funds categorized by structure (open-ended, close-ended, internal) and nature (equity, debt, balanced).

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    Mutual Funds

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    This document provides an overview of mutual funds. It defines mutual funds as a professionally managed collective investment scheme that pools money from many investors to invest in stocks. The Security Exchange Board of India (SEBI) regulates all mutual funds in India to protect investors. Mutual funds offer benefits like small investments, professional management, risk spreading, transparency, choice and liquidity. There are various types of mutual funds categorized by structure (open-ended, close-ended, internal) and nature (equity, debt, balanced).

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    Download as ppt, pdf, or txt
    19 views15 pages

    Mutual Funds: Presented By-Preeti Mathur MBA (FT) Sec-A Roll No. 06619103909

    Uploaded by

    Preeti Mathur
    This document provides an overview of mutual funds. It defines mutual funds as a professionally managed collective investment scheme that pools money from many investors to invest in stocks. The Security Exchange Board of India (SEBI) regulates all mutual funds in India to protect investors. Mutual funds offer benefits like small investments, professional management, risk spreading, transparency, choice and liquidity. There are various types of mutual funds categorized by structure (open-ended, close-ended, internal) and nature (equity, debt, balanced).

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    MUTUAL FUNDS

    Presented by-

    Preeti Mathur
    MBA(FT) Sec-A
    Roll No. 06619103909
    DEFINITIONS

     A professionally managed type of collective


    investment scheme that pools money from
    many investors & invests it in stocks.

     A financial intermediatory that allows a group


    of investors to pool their money together with
    a predetermined investment objective.
    HOW MUTUAL FUNDS
    WORK
    REGULATORY
    AUTHORITY
    Security Exchange Board of India (SEBI) is the
    regulatory body of all the mutual funds. The
    responsibilities of SEBI are:
    • To protect the interest of the investors.
    • Handle grievances.
    • Formulates policies & regulates the mutual funds.
    RIGHTS AVAILABLE TO A
    MUTUAL FUND HOLDER
     Receiving Unit certificates.
     Receiving information about investment.
     Receiving dividend.
     Complete disclosure of relevant information.
     Wind up the scheme.
     Grievance handling.
    BENEFITS OF MUTUAL
    FUNDS
     Small investments.
     Professional fund management.
     Spreading risks.
     Transparency.
     Choice
     Regulation
     Liquidity
    FUND OFFER DOCUMENT

    It is a document offering all the information


    one could possibly need about a particular
    scheme. This way, an investor is well aware
    of the risks involved. According to SEBI, the
    stipulated guidelines of a fund offer document
    are as follows-
    Cont..
     Investment objectives.
     Risk factors & special considerations.
     Summary of Expenses.
     Constitution of funds.
     Guidelines on how to invest.
     Organization & capital structure.
     Tax provisions related to transactions.
     Financial information.
    TYPES OF MUTUAL FUNDS
     On the basis of structure:
    i. Open-Ended Schemes
    ii. Close-Ended Schemes
    iii. Internal Schemes
     On the basis of Nature:
    i. Equity Fund
    ii. Debt Fund
    iii. Balanced Fund
    TYPES OF RETURNS

     From dividends on stocks & interest.

     Selling securities that have increased price.

     Reinvest profitable shares.


    VALUATION OF UNITS

    Net Asset Value (NAV) per unit is basically arrived


    at, by calculating the total market value of
    investments of assets of the mutual fund by the
    following formula-
    Total market value of assets or securities
    NAV= in portfolio of the fund – Liabilities
    Number of fund units outstanding
    DISADVANTAGES OF
    MUTUAL FUNDS
     Professional Management- Some funds are not
    dynamic enough to explore all the available
    opportunities.
     Costs- Which are charged on the form of entry
    and exit load
     Dilution- High returns on a few investment does
    not make a difference on the overall returns
     Taxes- When making decisions about money fund
    managers do not consider personal tax situations.
    CONCLUSION

    Mutual funds are professionally managed


    investment tools which provide security to
    the investors. Moreover, the ‘trust’, which is a
    custodian body that consists of expertise,
    ensures systematic and professional fund
    management.
    Cont…

    By investing in a mutual fund, an investor is


    secure as his investment is in secure hands.
    Also, the investor has the option of diversifying
    his risks. Thus, mutual funds are a safe option
    to investors who prefer secure management of
    their finances.
    THANK
    YOU

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