welcome to our presentation mutual fund

8/3/2019 Welcome to Our Presentation Mutual Fund

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Presented by:Rachit Rastogi

:Ankit Tiwari


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A Mutual Fund is an intermediary that pools moneyfrom a number of investors and invests the same in avariety of different financial instruments. The income

earned through these investments and the capitalappreciation realized by the scheme is shared by theinvestors or Unit Holders, in proportion to the numberof units owned by them. Mutual funds can thus beconsidered as financial intermediaries that collectfunds from investors and invest it on their behalf. Thelosses and gains accrue to the investors only.


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y The mutual fund industry in india started in1963 with theformation of Unit Trust Of India.

y The first and for the long the largest scheme was Unitscheme 1964 also known as US-64.It was also the firstpartly open-ended scheme.

y Mastershare was the first diversified equity investmentscheme in india.

y

1987 marked the entry of public sector mutual funds.y SBI established the first non UTI mutual fund in 1987

followed by Canbank mutual fund,LIC,Indian bank mutualfund,Bank of india mutual fund ,GIC and PNB.


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y Open ended funds

y Close ended fund

y Interval fund

y Debt fund

y Equity fund

y Hybrid fund

y

Other fund


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y Fundamental Attributes

y Legal Document

y All important Disclosures

y

Prime source of information for an investor to makedecisions

y Risk factors: Standard and Scheme specific

y Investment objective and policies , Investment procedure

y SEBI requires for an open ended scheme to be revised in

every 2 yearsy Key information memorandum(KIM) is an abridged form

of offer document


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y Types of Distribution channnels:

I. Individuals

II. Distribution companyIII. Banks & NBFCs

IV. Post Office

V. Direct Marketing


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y Commissions rate vary from fund house to fundhouse & from scheme to scheme

y Upfront & Trail commissions

y Fund is not answerable for the activities of sub-broker

y Investor servicing

y SEBIs advertising code

y AMFI Code of Ethics(ACE)


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y Net Asset Value: It is common practice for mutualfunds to compute the share of each investor on thebasis of the value of Net Assets per share/unit. TheShare of each investor thus computed is called Net

Asset Valuey FORMULA FOR Computing NAV:

y NAV= Net Asset of the scheme/Number of unitsOutstanding

y Net Assets of the scheme=Market value of investments+ Other accrued incomes + other assets Accruedexpenses other payable other liabilities


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y Mutual fund offer investor the opportunity to earnincome through professional management.

y Risk is diversified by portfolio diversification.

y Provide liquidity to the investor throughy Mutual fund are not liable to pay tax on the income

they earn.

y Convenient option for the investor.

y Regulatory comfort in mutual fund because SEBI hasmandated strict checks and balances in the structureof mutual fund and their activities.


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welcome to our presentation mutual fund

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