Description

CHANGE YOUR VOICE INTO SOMETHING MORE FUN ! TRANSFORM YOUR VOICE WITH HILARIOUS EFFECTS: helium, robot, gangster, alien and more AND HAVE FUN WITH ALL YOUR FRIENDS. Be careful, this app is highly addictive. Find out what your voice would sound like if you inhaled helium, speak like a futuristic robot or like a threatening gangster, give the impression that a chipmunk chorus repeats everything you say...all of this is possible with Voice Morphing. And there is more : your voice can be modified in unlimited ways with advanced and sound fx settings. Say something into your iPhone/iPod or record one of your friends, Voice Morphing will transform your recording into something fun or ridiculous. Voice Morphing works in real time, you can change the effect applied to your voice instantly to any other while playing, no waiting for the effect to be applied. Even better, you can record your voice while it is modified to share it by email or play back later. Since everyone has a different voice, you can modify the morpher's settings to make them perfectly fit your voice. You will never get bored of this app, guaranteed. Features : - 12 pre-set filters to have fun as soon as you start the app. - Advanced mode to modify your voice with your own settings. - Sound FX mode to add crazy effects to your voice. - Real time morphing, no waiting for the file to be modified. - You can save your modified voices and share them by email. - A library with all your recordings : original and modified. - 3 theme for the user interface. - A LOT OF LAUGHS WARNING : iPod Touch users with no built in microphone devices will have to plug a microphone in to use this application properly. If you are an iPhone user, please ensure your device is not in vibrate mode. HAVE FUN MORPHING YOUR VOICE !
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;

Voice Morphing INTRODUCTION Voice morphing is a technique for modifying a (source) speaker's speech to different (target) speaker. Voice morphing means the transition of one speech signal into another.

EXAMPLE Online games lately provide a function that players can join them as one of the limited number of prepared characters. Many of such games use a voicing function with which users talk each other using the characters voice instead of their own voices. Morphing process: A Comprehensive Analysis The main process can be categorized as follows 1) Representation conversion 2) Cepstral analysis 3) Morphing 4) Signal re-estimation

Morphing process : MORPHING To create an effective morph, it is necessary to match one or more of these properties of each signal to those of the other signal in some way. The match path shows the amount of movement required in order aligning corresponding features in time Research Goals To develop algorithms which can morph speech from one speaker to another with the following properties. High quality Cross language voice conversion The ability to operate with target voice training data ranging from a few seconds to tens of minutes.

APPLICATION Entertainment In Computer Gaming In Film Industry Reference: http://www.seminarprojects.com/Thread-voice-morphing-full-report?page=2#ixzz1hutgAnli

Mutual fund

Home

Fund Facts

Performance

Industry Update

News

NAV

MFI Solutions

MFI School Mutual Fund Basics Investment Guide NRI Guide

Basics of mutual funds

The article mentioned below, is for the investors who have not yet started investing in mutual funds, but willing to explo

and also for those who want to clear their basics for what is mutual fund and how best it can serve as an investment to

Getting Started

Before we move to explain what is mutual fund, its very important to know the area in which mutual funds works, the b understanding of stocks and bonds.

Stocks
FAQ Glossary are considered to be the most common owned investment traded on the market.

Stocks represent shares of ownership in a public company. Examples of public companies include Reliance, ONGC an

Bonds
Bonds are basically the money which you lend to the government or a company, and in return you can receive interest on the market. majority of mutual funds invest in stocks and/or bonds.

amount, which is back over predetermined amounts of time. Bonds are considered to be the most common lending inv

There are many other types of investments other than stocks and bonds (including annuities, real estate, and precious

Working of Mutual Fund

Regulatory Authorities
To protect the interest of the investors, SEBI formulates policies and regulates the mutual funds. It notified regulations promoted by foreign entities is governed by these Regulations.

revised in 1996) and issues guidelines from time to time. MF either promoted by public or by private sector entities incl

SEBI approved Asset Management Company (AMC) manages the funds by making investments in various types of se Custodian, registered with SEBI, holds the securities of various schemes of the fund in its custody.

According to SEBI Regulations, two thirds of the directors of Trustee Company or board of trustees must be independe the strict regulatory framework. Its objective is to increase public awareness of the mutual fund industry.

The Association of Mutual Funds in India (AMFI) reassures the investors in units of mutual funds that the mutual funds

AMFI also is engaged in upgrading professional standards and in promoting best industry practices in diverse areas su disclosure, transparency etc.

What is a Mutual Fund?

A mutual fund is just the connecting bridge or a financial intermediary that allows a group of investors to pool their mon

a predetermined investment objective. The mutual fund will have a fund manager who is responsible for investing the g on investing becomes a shareholder or unit holder of the fund.

into specific securities (stocks or bonds). When you invest in a mutual fund, you are buying units or portions of the mut

Mutual funds are considered as one of the best available investments as compare to others they are very cost efficient

invest in, thus by pooling money together in a mutual fund, investors can purchase stocks or bonds with much lower tra

they tried to do it on their own. But the biggest advantage to mutual funds is diversification, by minimizing risk & maxim

Diversification
Diversification is nothing but spreading out your money across available or different types of investments. By choosing respective investment holdings reduces risk tremendously up to certain extent.

The most basic level of diversification is to buy multiple stocks rather than just one stock. Mutual funds are set up to bu

Beyond that, you can diversify even more by purchasing different kinds of stocks, then adding bonds, then internationa mutual funds automatically diversify in a predetermined category of investments (i.e. - growth companies, emerging or companies, low-grade corporate bonds, etc).

could take you weeks to buy all these investments, but if you purchased a few mutual funds you could be done in a few

Types of Mutual Funds Schemes in India

Wide variety of Mutual Fund Schemes exists to cater to the needs such as financial position, risk tolerance and return e

thus mutual funds has Variety of flavors, Being a collection of many stocks, an investors can go for picking a mutual fun

There are over hundreds of mutual funds scheme to choose from. It is easier to think of mutual funds in categories, me

Overview of existing schemes existed in mutual fund category: BY STRUCTURE

1. Open - Ended Schemes:

An open-end fund is one that is available for subscription all through the year. These do not have a fixed maturity. Inve

conveniently buy and sell units at Net Asset Value ("NAV") related prices. The key feature of open-end schemes is liqu 2. Close - Ended Schemes:

These schemes have a pre-specified maturity period. One can invest directly in the scheme at the time of the initial iss

the structure of the scheme there are two exit options available to an investor after the initial offer period closes. Invest

(buy or sell) the units of the scheme on the stock exchanges where they are listed. The market price at the stock excha factors. Alternatively some close-ended schemes provide an additional option of selling the units directly to the Mutual Regulations ensure that at least one of the two exit routes is provided to the investor. 3. Interval Schemes: the stock exchange or may be open for sale or redemption during pre-determined intervals at NAV related prices.

from the net asset value (NAV) of the scheme on account of demand and supply situation, expectations of unitholder a

periodic repurchase at the schemes NAV; however one cannot buy units and can only sell units during the liquidity win

Interval Schemes are that scheme, which combines the features of open-ended and close-ended schemes. The units m

The risk return trade-off indicates that if investor is willing to take higher risk then correspondingly he can expect higher

versa if he pertains to lower risk instruments, which would be satisfied by lower returns. For example, if an investors o

which provide moderate return with minimal risk. But as he moves ahead to invest in capital protected funds and the pr proportion.

give out more return which is slightly higher as compared to the bank deposits but the risk involved also increases in th

Thus investors choose mutual funds as their primary means of investing, as Mutual funds provide professional manage

diversification, convenience and liquidity. That doesnt mean mutual fund investments risk free. This is because the mo

pooled in are not invested only in debts funds which are less riskier but are also invested in the stock markets which in considered very volatile.

risk but can expect higher returns. Hedge fund involves a very high risk since it is mostly traded in the derivatives mark

Overview of existing schemes existed in mutual fund category: BY NATURE

1. Equity fund:

These funds invest a maximum part of their corpus into equities holdings. The structure of the fund may vary different f objective, as follows:

schemes and the fund managers outlook on different stocks. The Equity Funds are sub-classified depending upon the

Diversified Equity Funds Mid-Cap Funds Sector Specific Funds Tax Savings Funds (ELSS)

Equity investments are meant for a longer time horizon, thus Equity funds rank high on the risk-return matrix. 2. Debt funds:

The objective of these Funds is to invest in debt papers. Government authorities, private companies, banks and financi the investors. Debt funds are further classified as:

some of the major issuers of debt papers. By investing in debt instruments, these funds ensure low risk and provide sta

Gilt Funds: Invest their corpus in securities issued by Government, popularly known as Government of India papers backed by Government.

These Funds carry zero Default risk but are associated with Interest Rate risk. These schemes are safer as th

Income Funds: Invest a major portion into various debt instruments such as bonds, corporate debentures an securities.

MIPs: Invests maximum of their total corpus in debt instruments while they take minimum exposure in equities schemes.

of both equity and debt market. These scheme ranks slightly high on the risk-return matrix when compared wi

Short Term Plans (STPs): Meant for investment horizon for three to six months. These funds primarily invest corporate debentures.

papers like Certificate of Deposits (CDs) and Commercial Papers (CPs). Some portion of the corpus is also in

Liquid Funds: Also known as Money Market Schemes, These funds provides easy liquidity and preservation

schemes invest in short-term instruments like Treasury Bills, inter-bank call money market, CPs and CDs. The

meant for short-term cash management of corporate houses and are meant for an investment horizon of 1day

These schemes rank low on risk-return matrix and are considered to be the safest amongst all categories of m

3. Balanced funds: in line with pre-defined investment objective of the scheme. These schemes aim to provide investors with the best of b Equity part provides growth and the debt part provides stability in returns. Further the mutual funds can be broadly classified on the basis of investment parameter viz, his own investment needs with the funds objective and invest accordingly.

As the name suggest they, are a mix of both equity and debt funds. They invest in both equities and fixed income secu

Each category of funds is backed by an investment philosophy, which is pre-defined in the objectives of the fund. The i

By investment objective:

Growth Schemes: Growth Schemes are also known as equity schemes. The aim of these schemes is to prov bear short-term decline in value for possible future appreciation.

appreciation over medium to long term. These schemes normally invest a major part of their fund in equities a

Income Schemes:Income Schemes are also known as debt schemes. The aim of these schemes is to provid debentures. Capital appreciation in such schemes may be limited.

steady income to investors. These schemes generally invest in fixed income securities such as bonds and cor

Balanced Schemes: Balanced Schemes aim to provide both growth and income by periodically distributing a indicated in their offer documents (normally 50:50).

income and capital gains they earn. These schemes invest in both shares and fixed income securities, in the p

Money Market Schemes: Money Market Schemes aim to provide easy liquidity, preservation of capital and m paper and inter-bank call money.

These schemes generally invest in safer, short-term instruments, such as treasury bills, certificates of deposit

Other schemes
Tax Saving Schemes:

Tax-saving schemes offer tax rebates to the investors under tax laws prescribed from time to time. Under Sec.8 Tax Act, contributions made to any Equity Linked Savings Scheme (ELSS) are eligible for rebate.

Index Schemes: Index schemes attempt to replicate the performance of a particular index such as the BSE Sensex or the NSE

of these schemes will consist of only those stocks that constitute the index. The percentage of each stock to th those of the Index.

be identical to the stocks index weightage. And hence, the returns from such schemes would be more or less e

Sector Specific Schemes:

These are the funds/schemes which invest in the securities of only those sectors or industries as specified in th

documents. e.g. Pharmaceuticals, Software, Fast Moving Consumer Goods (FMCG), Petroleum stocks, etc. Th

these funds are dependent on the performance of the respective sectors/industries. While these funds may giv sectors/industries and must exit at an appropriate time.

they are more risky compared to diversified funds. Investors need to keep a watch on the performance of those

Types of returns
There are three ways, where the total returns provided by mutual funds can be enjoyed by investors:

Income is earned from dividends on stocks and interest on bonds. A fund pays out nearly all income it receive fund owners in the form of a distribution.

If the fund sells securities that have increased in price, the fund has a capital gain. Most funds also pass on th investors in a distribution.

If fund holdings increase in price but are not sold by the fund manager, the fund's shares increase in price. Yo reinvest the earnings and get more shares.

your mutual fund shares for a profit. Funds will also usually give you a choice either to receive a check for dist

Pros & cons of investing in mutual funds:

For investments in mutual fund, one must keep in mind about the Pros and cons of investments in mutual fund. Advantages of Investing Mutual Funds:

1. Professional Management - The basic advantage of funds is that, they are professional managed, by well qualified to be relatively less expensive way to make and monitor their investments.

Investors purchase funds because they do not have the time or the expertise to manage their own portfolio. A mutual fu

2. Diversification - Purchasing units in a mutual fund instead of buying individual stocks or bonds, the investors risk is investment is minimized by gains in others.

minimized up to certain extent. The idea behind diversification is to invest in a large number of assets so that a loss in a

3. Economies of Scale - Mutual fund buy and sell large amounts of securities at a time, thus help to reducing transact help to bring down the average cost of the unit for their investors.

4. Liquidity - Just like an individual stock, mutual fund also allows investors to liquidate their holdings as and when the

5. Simplicity - Investments in mutual fund is considered to be easy, compare to other available instruments in the mar Rs.50 per month basis.

minimum investment is small. Most AMC also have automatic purchase plans whereby as little as Rs. 2000, where SIP

Disadvantages of Investing Mutual Funds:

1. Professional Management- Some funds doesnt perform in neither the market, as their management is not dynami better than mutual fund or investor him self, for picking up stocks.

explore the available opportunity in the market, thus many investors debate over whether or not the so-called professio

2. Costs The biggest source of AMC income, is generally from the entry & exit load which they charge from an inves of purchase. The mutual fund industries are thus charging extra cost under layers of jargon.

3. Dilution - Because funds have small holdings across different companies, high returns from a few investments often have had strong success, the manager often has trouble finding a good investment for all the new money.

much difference on the overall return. Dilution is also the result of a successful fund getting too big. When money pours

4. Taxes - when making decisions about your money, fund managers don't consider your personal tax situation. For ex been more advantageous for the individual to defer the capital gains liability.

fund manager sells a security, a capital-gain tax is triggered, which affects how profitable the individual is from the sale

Make MFI Your Home Page

About Us | Careers | Feedback | Contact us | Sitemap

Copyright 2010 - 2011 ICRA Online Ltd. All Rights Reserved. Site designed, developed & maintained by ICRA Online Ltd. Disclaimer & Terms of Use

Mutual fund

Basics of mutual funds The article mentioned below, is for the investors who have not yet started investing in mutual funds, but willing to explore the opportunity and also for those who want to clear their basics for what is mutual fund and how best it can serve as an investment tool. Getting Started Before we move to explain what is mutual fund, its very important to know the area in which mutual funds works, the basic understanding of stocks and bonds. Stocks

Stocks represent shares of ownership in a public company. Examples of public companies include Reliance, ONGC and Infosys. Stocks are considered to be the most common owned investment traded on the market. Bonds Bonds are basically the money which you lend to the government or a company, and in return you can receive interest on your invested amount, which is back over predetermined amounts of time. Bonds are considered to be the most common lending investment traded on the market. There are many other types of investments other than stocks and bonds (including annuities, real estate, and precious metals), but the majority of mutual funds invest in stocks and/or bonds. TOP Working of Mutual Fund

TOP Regulatory Authorities To protect the interest of the investors, SEBI formulates policies and regulates the mutual funds. It notified regulations in 1993 (fully revised in 1996) and issues guidelines from time to time. MF either promoted by public or by private sector entities including one promoted by foreign entities is governed by these Regulations. SEBI approved Asset Management Company (AMC) manages the funds by making investments in various types of securities. Custodian, registered with SEBI, holds the securities of various schemes of the fund in its custody. According to SEBI Regulations, two thirds of the directors of Trustee Company or board of trustees must be independent. The Association of Mutual Funds in India (AMFI) reassures the investors in units of mutual funds that the mutual funds function within the strict regulatory framework. Its objective is to increase public awareness of the mutual fund industry. AMFI also is engaged in upgrading professional standards and in promoting best industry practices in diverse areas such as valuation, disclosure, transparency etc. TOP What is a Mutual Fund?

A mutual fund is just the connecting bridge or a financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective. The mutual fund will have a fund manager who is responsible for investing the gathered money into specific securities (stocks or bonds). When you invest in a mutual fund, you are buying units or portions of the mutual fund and thus on investing becomes a shareholder or unit holder of the fund. Mutual funds are considered as one of the best available investments as compare to others they are very cost efficient and also easy to invest in, thus by pooling money together in a mutual fund, investors can purchase stocks or bonds with much lower trading costs than if they tried to do it on their own. But the biggest advantage to mutual funds is diversification, by minimizing risk & maximizing returns. TOP Diversification Diversification is nothing but spreading out your money across available or different types of investments. By choosing to diversify respective investment holdings reduces risk tremendously up to certain extent. The most basic level of diversification is to buy multiple stocks rather than just one stock. Mutual funds are set up to buy many stocks. Beyond that, you can diversify even more by purchasing different kinds of stocks, then adding bonds, then international, and so on. It could take you weeks to buy all these investments, but if you purchased a few mutual funds you could be done in a few hours because mutual funds automatically diversify in a predetermined category of investments (i.e. - growth companies, emerging or mid size companies, low-grade corporate bonds, etc). TOP Types of Mutual Funds Schemes in India Wide variety of Mutual Fund Schemes exists to cater to the needs such as financial position, risk tolerance and return expectations etc. thus mutual funds has Variety of flavors, Being a collection of many stocks, an investors can go for picking a mutual fund might be easy. There are over hundreds of mutual funds scheme to choose from. It is easier to think of mutual funds in categories, mentioned below. Overview of existing schemes existed in mutual fund category: BY STRUCTURE 1. Open - Ended Schemes: An open-end fund is one that is available for subscription all through the year. These do not have a fixed maturity. Investors can conveniently buy and sell units at Net Asset Value ("NAV") related prices. The key feature of open-end schemes is liquidity. 2. Close - Ended Schemes: These schemes have a pre-specified maturity period. One can invest directly in the scheme at the time of the initial issue. Depending on the structure of the scheme there are two exit options available to an investor after the initial offer period closes. Investors can transact (buy or sell) the units of the scheme on the stock exchanges where they are listed. The market price at the stock exchanges could vary from the net asset value (NAV) of the scheme on account of demand and supply situation, expectations of unitholder and other market factors. Alternatively some close-ended schemes provide an additional option of selling the units directly to the Mutual Fund through periodic repurchase at the schemes NAV; however one cannot buy units and can only sell units during the liquidity window. SEBI Regulations ensure that at least one of the two exit routes is provided to the investor.

3. Interval Schemes: Interval Schemes are that scheme, which combines the features of open-ended and closeended schemes. The units may be traded on the stock exchange or may be open for sale or redemption during pre-determined intervals at NAV related prices.

The risk return trade-off indicates that if investor is willing to take higher risk then correspondingly he can expect higher returns and vise versa if he pertains to lower risk instruments, which would be satisfied by lower returns. For example, if an investors opt for bank FD, which provide moderate return with minimal risk. But as he moves ahead to invest in capital protected funds and the profit-bonds that give out more return which is slightly higher as compared to the bank deposits but the risk involved also increases in the same proportion. Thus investors choose mutual funds as their primary means of investing, as Mutual funds provide professional management, diversification, convenience and liquidity. That doesnt mean mutual fund investments risk free. This is because the money that is pooled in are not invested only in debts funds which are less riskier but are also invested in the stock markets which involves a higher risk but can expect higher returns. Hedge fund involves a very high risk since it is mostly traded in the derivatives market which is considered very volatile. Overview of existing schemes existed in mutual fund category: BY NATURE 1. Equity fund: These funds invest a maximum part of their corpus into equities holdings. The structure of the fund may vary different for different schemes and the fund managers outlook on different stocks. The Equity Funds are sub-classified depending upon their investment objective, as follows:

Diversified Equity Funds Mid-Cap Funds

Sector Specific Funds Tax Savings Funds (ELSS)

Equity investments are meant for a longer time horizon, thus Equity funds rank high on the risk-return matrix. 2. Debt funds: The objective of these Funds is to invest in debt papers. Government authorities, private companies, banks and financial institutions are some of the major issuers of debt papers. By investing in debt instruments, these funds ensure low risk and provide stable income to the investors. Debt funds are further classified as:

Gilt Funds: Invest their corpus in securities issued by Government, popularly known as Government of India debt papers. These Funds carry zero Default risk but are associated with Interest Rate risk. These schemes are safer as they invest in papers backed by Government. Income Funds: Invest a major portion into various debt instruments such as bonds, corporate debentures and Government securities. MIPs: Invests maximum of their total corpus in debt instruments while they take minimum exposure in equities. It gets benefit of both equity and debt market. These scheme ranks slightly high on the risk-return matrix when compared with other debt schemes. Short Term Plans (STPs): Meant for investment horizon for three to six months. These funds primarily invest in short term papers like Certificate of Deposits (CDs) and Commercial Papers (CPs). Some portion of the corpus is also invested in corporate debentures. Liquid Funds: Also known as Money Market Schemes, These funds provides easy liquidity and preservation of capital. These schemes invest in short-term instruments like Treasury Bills, inter-bank call money market, CPs and CDs. These funds are meant for short-term cash management of corporate houses and are meant for an investment horizon of 1day to 3 months. These schemes rank low on risk-return matrix and are considered to be the safest amongst all categories of mutual funds.

3. Balanced funds: As the name suggest they, are a mix of both equity and debt funds. They invest in both equities and fixed income securities, which are in line with pre-defined investment objective of the scheme. These schemes aim to provide investors with the best of both the worlds. Equity part provides growth and the debt part provides stability in returns. Further the mutual funds can be broadly classified on the basis of investment parameter viz, Each category of funds is backed by an investment philosophy, which is pre-defined in the objectives of the fund. The investor can align his own investment needs with the funds objective and invest accordingly. By investment objective: Growth Schemes: Growth Schemes are also known as equity schemes. The aim of these schemes is to provide capital appreciation over medium to long term.

These schemes normally invest a major part of their fund in equities and are willing to bear short-term decline in value for possible future appreciation.

Income Schemes:Income Schemes are also known as debt schemes. The aim of these schemes is to provide regular and steady income to investors. These schemes generally invest in fixed income securities such as bonds and corporate debentures. Capital appreciation in such schemes may be limited. Balanced Schemes: Balanced Schemes aim to provide both growth and income by periodically distributing a part of the income and capital gains they earn. These schemes invest in both shares and fixed income securities, in the proportion indicated in their offer documents (normally 50:50). Money Market Schemes: Money Market Schemes aim to provide easy liquidity, preservation of capital and moderate income. These schemes generally invest in safer, short-term instruments, such as treasury bills, certificates of deposit, commercial paper and inter-bank call money.

Other schemes Tax Saving Schemes: Tax-saving schemes offer tax rebates to the investors under tax laws prescribed from time to time. Under Sec.88 of the Income Tax Act, contributions made to any Equity Linked Savings Scheme (ELSS) are eligible for rebate. Index Schemes: Index schemes attempt to replicate the performance of a particular index such as the BSE Sensex or the NSE 50. The portfolio of these schemes will consist of only those stocks that constitute the index. The percentage of each stock to the total holding will be identical to the stocks index weightage. And hence, the returns from such schemes would be more or less equivalent to those of the Index. Sector Specific Schemes: These are the funds/schemes which invest in the securities of only those sectors or industries as specified in the offer documents. e.g. Pharmaceuticals, Software, Fast Moving Consumer Goods (FMCG), Petroleum stocks, etc. The returns in these funds are dependent on the performance of the respective sectors/industries. While these funds may give higher returns, they are more risky compared to diversified funds. Investors need to keep a watch on the performance of those sectors/industries and must exit at an appropriate time. TOP Types of returns There are three ways, where the total returns provided by mutual funds can be enjoyed by investors:

Income is earned from dividends on stocks and interest on bonds. A fund pays out nearly all income it receives over the year to fund owners in the form of a distribution. If the fund sells securities that have increased in price, the fund has a capital gain.

Most funds also pass on these gains to investors in a distribution.

If fund holdings increase in price but are not sold by the fund manager, the fund's shares increase in price. You can then sell your mutual fund shares for a profit. Funds will also usually give you a choice either to receive a check for distributions or to reinvest the earnings and get more shares. TOP

Pros & cons of investing in mutual funds: For investments in mutual fund, one must keep in mind about the Pros and cons of investments in mutual fund. Advantages of Investing Mutual Funds: 1. Professional Management - The basic advantage of funds is that, they are professional managed, by well qualified professional. Investors purchase funds because they do not have the time or the expertise to manage their own portfolio. A mutual fund is considered to be relatively less expensive way to make and monitor their investments. 2. Diversification - Purchasing units in a mutual fund instead of buying individual stocks or bonds, the investors risk is spread out and minimized up to certain extent. The idea behind diversification is to invest in a large number of assets so that a loss in any particular investment is minimized by gains in others. 3. Economies of Scale - Mutual fund buy and sell large amounts of securities at a time, thus help to reducing transaction costs, and help to bring down the average cost of the unit for their investors. 4. Liquidity - Just like an individual stock, mutual fund also allows investors to liquidate their holdings as and when they want. 5. Simplicity - Investments in mutual fund is considered to be easy, compare to other available instruments in the market, and the minimum investment is small. Most AMC also have automatic purchase plans whereby as little as Rs. 2000, where SIP start with just Rs.50 per month basis. Disadvantages of Investing Mutual Funds: 1. Professional Management- Some funds doesnt perform in neither the market, as their management is not dynamic enough to explore the available opportunity in the market, thus many investors debate over whether or not the so-called professionals are any better than mutual fund or investor him self, for picking up stocks. 2. Costs The biggest source of AMC income, is generally from the entry & exit load which they charge from an investors, at the time of purchase. The mutual fund industries are thus charging extra cost under layers of jargon. 3. Dilution - Because funds have small holdings across different companies, high returns from a few investments often don't make much difference on the overall return. Dilution is also the result of a successful fund getting too big. When money pours into funds that have had strong success, the manager often has trouble finding a good investment for all the new money. 4. Taxes - when making decisions about your money, fund managers don't consider your personal tax situation. For example, when a fund manager sells a security, a capital-gain tax is triggered, which affects how profitable the individual is from the sale. It might have been more advantageous for the individual to defer the capital gains liability.

TOP

Investments in Mutual Fund Mutual Funds are a popular investment tool for investors because it offers a convenient and cost-effective way to invest in the financial markets. Mutual fund industry in India came with the concept of Mutual Fund in the year 1963 at the initiative of the Government of India and Reserve Bank of India. The growth was slow initially but it accelerated from the year 1987 when non-UTI players entered the industry. The industry witnessed a compounded annual growth rate of 31.25% from March 2003 to March 2011. The figure for March 2011 is the quarterly average for the first calendar quarter as the regulator stopped providing monthly average asset under management (AAUM) from September 2010 onwards.

Mutual Funds are right way to invest into because it provides affordability, liquidity, tax benefits, and professional management and most importantly it helps in maximizing returns by effectively utilizing hard earned money. It also allows investor to systematically invest in equities and debt markets through Systematic Investment Plan. Through this mode investor can take exposure with as little as Rs. Five hundred and by investing regularly for a longer period can benefit from cost averaging and can built a large corpus to meet future commitments. Mutual fund is required to be registered with Securities and Exchange Board of India (SEBI), which regulates securities markets, before it can collect funds from the public. It acts like a company that pools money from investors and invests the same in stocks, bonds, short-term money-market instruments, other securities or assets and some combination of these investments. It offers an opportunity to invest in a diversified, professionally managed basket of securities. These securities are often referred to as holdings and all of the fund's holdings make up the portfolio. When one invest in a mutual fund, the investor is actually buying shares in the fund, which means investors own a percentage of the fund's entire portfolio in ratio of its holding. The assets in a mutual fund's portfolio are managed by a professional Fund Manager(s) who decides which securities to buy and sell based on the fund's investment objective, mentioned in the fund's prospectus. Wide varieties of Mutual Fund Schemes exist to cater to the needs such as financial position, risk tolerance and

return expectations etc. The table below gives an overview into the existing types of schemes in the Industry.

If any new investor is looking to invest for the future in equities will usually face two options - mutual funds or individual stocks. However understanding the differences between them is essential as both carry inherent advantages and risks. Any individual investing in common stock of a company has to bear the responsibility of managing his portfolio on his own and also bear the price risk. In this active form of investment an individual must have sound knowledge, experience and adequate time, lack of which may increase his risk exposure. However Mutual Funds help to reduce risk through diversification and professional management. The experience and expertise of Fund managers in selecting securities and timing their purchases and sales help them to build a diversified portfolio that minimizes risk and maximizes returns. Lastly, after understanding the basics of mutual fund and its various schemes, an individual as per his investment objective needs to know the various criteria to choose the fund, which can be

Performance analysis of the scheme for a considerable long period taking into account historical returns and portfolio. Analysis of the Fund House and the experience of the Fund Manger. Analysis of the fund corpus and how it has changed across the time period. Comparison of charges deducted by Asset Management Companies across the category where an investor wishes to make investment. The price at which one can exit (i.e. exit load) the scheme and its impact on overall return. Comparison of scheme with its benchmark and how has the scheme performed especially in a volatile environment. Last but not the least an investor can refer to certain investment ratios such as Sharpe, Sortino, Treynor, Alpha etc. to judge the risk-return analysis of the scheme. The information regarding the ratio and their interpretation can be taken from www.mutualfundsindia.com.

NRI Investments in Mutual Fund

Non Resident Indians and Persons of Indian Origin residing abroad (NRIs) / Foreign Institutional Investors (FIIs) have been granted a general permission by Reserve Bank of India (RBI) for investing in and redeeming units of the mutual funds. NRI is an Indian citizen or a foreign citizen of Indian origin who stays abroad for employment, carrying on business or vocation or under circumstances indicating an intention for an uncertain duration to stay abroad. A person shall be deemed to be of Indian origin if he/she or either of his/her parents or grandparents were born in undivided India. To invest in Indian Mutual Funds, NRI need to open a bank account through the bank that provides these facilities. The different kind of Bank Accounts and their characteristics are depicted in the following table Non-Resident External account (NRE) Foreign Currency NonResident account (FCNR) US Dollar, GBP, Yen, Euro, Pound Sterling Term deposit account of minimum 1yr to maximum 5yrs of tenure.

Particulars

Ordinary account (NRO)

Account Maintained in currency

Indian Rupees

Indian Rupees

Account type and tenure

Normal Bank Account

Normal Bank Account

Yes. Deposits as Whether well as interest Repatriable are repatriable. Investment could be done yes in Mutual Fund

Yes. Deposits No. Only interest as well as is interest are repatriable. repatriable.

yes

yes

NRI can invest in various Mutual fund schemes on both repatriation and nonrepatriation basis for which general permission is given by the Reserve Bank of India subject to the following conditions For repatriation Basis Company should comply with the terms and conditions stipulated by Securities and Exchange Board of India (SEBI). The amount representing investment should be received by inward remittance through normal banking channels, or by debit to a Non Resident External (NRE)

account or Foreign Currency Non-Resident (FCNR) account of the non-resident investor. The net amount representing the dividend, interest and maturity income of units may be allowed through normal banking channels or credited to NRE or FCNR account of the investor as preferred by him subject to payment of applicable tax. For Non repatriation Basis - Funds for investment should be debited to Non Resident Ordinary account of the NRI investor. Alternatively, funds may be invested by inward remittance or debiting to NRE/FCNR account. The current income in the form of dividends is allowed to be repatriated. NRIs - reason to invest in Mutual Fund Mutual Funds offer the simplest way of investing in increasingly complex financial markets. With the advantages of diversification, liquidity, professional management, etc., investor can be sure of peace of mind regards the growth of their hard earned money. The reasons could be (1) Flexibility - Mutual Fund investments offers a lot of flexibility with features such as systematic investment plans, systematic withdrawal plans & dividend reinvestment. (2) Affordability - They are available in units so this makes it very affordable. Because of the large corpus, even a small investor can benefit from its investment strategy. (3) Liquidity - In open ended schemes , one have the option of withdrawing or redeeming money at any point of time at the current NAV. With the introduction of ETFs, NRI can even trade in Mutual Funds like a company stock. (4) Diversification - Risk is lowered with Mutual Funds as they invest across different industries & stocks. Professional Management - Fund Managers of the Mutual Fund schemes analyses all options based on experience & research and hence investments are made on sound research. (5) Potential of return - The fund managers who take care of Mutual Fund have access to information and statistics from leading economists and analysts around the world. Because of this, they are in a better position than individual investors to identify opportunities for ones investments to flourish. (6) Low Costs - The benefits of scale in brokerage, custodial and other fees translate into lower costs for investors.

NRI Guide Book for Mutual Fund Who is a Non - Resident Indian (NRI)?
An Indian citizen or a foreign citizen of Indian origin who stays abroad for employment / carrying on business or vocation or under circumstances indicating an intension for an uncertain duration of stay abroad is a Non-Resident Indian. Those who stay abroad on business visits, for medical treatment, study or such other purposes, which do not indicate an intension to stay there for an indefinite period, are not considered as NRIs.

Who is a Person of Indian Origin (PIO)?

A person of Indian origin means a citizen of any country (other than Bangladesh or Pakistan), If: He/she at any time has held an Indian passport or a. b. He/she or either his/her parents or grandparents was a citizen of India by virtue of the constitution of India or Citizenship Act, 1955 (57 of 1995) or He / she is a spouse of an Indian citizen or of a person referred to in (a) or (b) above.

Who is a Foreign Institutional Investor (FII)?

FII means an institution established or incorporated outside India, which proposes to make investments in Indian securities and is registered with SEBI.

What is an Overseas Corporate Body (OCB)? An OCB is a company, partnership firm, society or other corporate body owned directly or indirectly to the extent of at least 60% by one or more NRIs and includes an overseas trust in which not less than 60% beneficial interest is held directly or indirectly by NRIs. Can an NRI maintain a bank account in India? Yes. NRI's can maintain bank accounts in rupees as well as in foreign currencies. Accounts in foreign currencies can, however be maintained in India with authorized dealers only. What are the different types of rupee accounts that are permitted and can be maintained by NRIs? The three types of rupee accounts permitted, that can be maintained by NRIs are as follows : a. NRE : Non-Resident (External) Rupee Account b. NRO : Non-Resident (Ordinary) Rupee Account c. FCNR - B : Foreign Currency (Non -Resident) Accounts (Banks) What are NRE and NRO accounts? Non-Resident (External) Rupee (NRE) account is a rupee account from which funds are freely repatriable. It can be opened with either fund remitted from abroad or local funds maintained in NRE/ FCNR accounts, which can be remitted abroad. The deposits can be used for all legitimate purposes. The balance in the account is freely repatriable. Interest credited to the NRE accounts is exempt from tax in the hands of the NRI. Non-Resident Ordinary Rupee (NRO) account is a rupee account and can be opened with funds either remitted from abroad or generated in India. The amounts in such an account are generally non-repatriable. However, funds in NRO accounts can be remitted abroad subject to/as per various directives in force at the time of repatriation. What is the distinction among NRE and NRO Accounts? Balances held in NRE accounts can be repatriated abroad freely, whereas funds in NRO accounts cannot be remitted abroad but have to be used only for local payments in rupees. Funds due to the non-resident account holder which do not qualify, under the Exchange Control regulations, for remittance outside India are required to be credited to NRO accounts. Type of Account Currency Repatriable/ Non Repatriable NRE - Non Resident External NRO - Non Resident Ordinary INR INR Freely Repatriable Non Repatriable, Repatriable subject to RBI conditions

FCNR - Foreign Currency USD, GBP, Yen, Repatriable Non Resident Euro Does an NRI, PIO, FII requires any approval from the RBI to invest in mutual fund schemes? No special approval is required. NRIs/FIIs have been granted a general permission by RBI [Schedule 5 of the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000] for investing in/redeeming units of the schemes subject to conditions set out in the aforesaid regulations. What is a PIO card? Who issues PIO cards? How to get a PIO card? Person of Indian origin (PIO) cards are issued by ministry of External Affairs (CPV Division), Government of India to persons of Indian origin through Indian missions abroad. Specific information on rules, forms, particular offices, missions is available on the website http://passport.gov.in/ Can an NRI invest in foreign currency? An NRI cannot make the investment in foreign currency. He needs to give a Rupee cheque from his NRE, NRO bank account in India. He may also send a Rupee cheque from abroad payable in a bank in India. However, for an NRI to invest, it is mandatory that he maintains a bank account in India.

What is the procedure for Investment of NRI/PIO/FII? There are various provisions related to investments by Non-Resident Indians, Persons of Indian Origin and Foreign Institutional Investors in the Schemes of the Mutual Fund and is based on the relevant provisions of the Income-tax Act, 1961 (the 'Act'), regulations issued under the Foreign Exchange Management Act, 1999 and the Wealth-tax Act, 1957 (collectively called 'the relevant provisions'), as they stand on the date of this abridged Offer Document. Purchase Applications a. NRI's and other overseas investors can invest in a Mutual Fund Schemes on Repatriable /NonRepatriable basis as per the provisions of Schedule 5 of the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000 (the 'Regulations') as explained below. A Common Application Form duly completed together with cheques or bank drafts should be remitted through Investor Service Centre ('ISC'). b. All Cheque/demand drafts accompanying the application form must be made in favour of "Selected Mutual Fund - Scheme Name" and crossed "A/c payee" only and should be made payable at a city where the application is accepted by the Mutual fund ISC. c. Once an account is opened the investor may purchase additional units by filling-up the Common Application Form or by simply filling in the account number in the application form and mailing the same to a Mutual FUND ISC, along with the cheque or the bank draft. Repatriable Basis - NRI's, PIO's To invest on a repatriable basis, one must have an NRE or FCNR Bank Account in India. The Reserve Bank of India (RBI) has granted a general permission to Mutual Funds to offer mutual fund schemes on repatriation basis, subject to the following conditions : a. The amount representing investment should be received by inward remittance through normal banking channels, or by debit to an NRE / FCNR account of the non-resident investor. b. The net amount representing the dividend / interest and maturity proceeds of units may be remitted through normal banking channels or credited to NRE / FCNR account of the investor, as desired by him subject to payment of applicable tax. Non-Repatriable Basis- NRI's, PIO's The Reserve Bank of India (RBI) has granted a general permission to Mutual Funds to offer mutual fund schemes on non-repatriation basis, subject to the following conditions : a. Funds for investment should be provided by debit to NRO account of the NRI/ PIO investor. Alternatively, funds may be invested by inward remittance or by debit to NRE / FCNR Account. FII Investors FIIs may pay for their purchases with funds held in a Foreign Currency account or Non-resident Rupee account maintained in a designated branch of an authorized dealer [Clause 3(1) of the Regulations]. Payments may be made by cheques payable at a city where the application is accepted by any Mutual Fund Investor Service centre (ISC). Applications from FIIs should be accompanied by appropriate documentation supporting the status of the investor and should be sent to the AMC/ISC, so as to reach them not later than 7 days after the date of the subscription. Similarly, in case of an application under a Power of Attorney or by an FII, the original Power of Attorney or the relevant resolution/authority to make the application (or a duly notarized certified true copy thereof), along with a certified copy of the Memorandum and Articles of Association and/or bye laws and Certificate of Registration should be submitted to the nearest ISC within 7 days from the date of the application. The officials should sign the application under their official designation.

The NRIs/PIOs/FIIs may also be required to furnish other documents needed to process their investments. How to redeem funds? In case of open-ended mutual fund schemes, simply fill up the redemption slip and send it to Investor Service Centers of AMCs. The cheques are normally mailed to within 3 to 5 business days from the day of receipt of the redemption request. In case of close-ended mutual fund schemes, the redemption slip has to be sold at the stock exchange where the scheme is listed through a registered stock exchange member. How will the redemption proceeds be paid? Redemption proceeds will be paid by a payable at par cheque and payments will be made in favour of the first investor and the bank account number shall be mentioned on the cheque as well. Redemption proceeds/repurchase price and/or dividend or income earned (if any) will be payable in Indian Rupees only. The mutual fund will not be liable for any loss on account of exchange fluctuations, while converting the rupee in US Dollar or any other currency. How can the redemption proceeds be repatriated? The investments shall carry the right of repatriation of capital invested and capital appreciation so long as the investor continues to be a resident outside India, after payment of tax, if any. In the case of an FII, the designated branch of the authorized dealer may allow remittance of net sale/maturity proceeds (after payment of taxes) or credit the amount to the Foreign Currency account or Non-Resident Rupee account of the FII, maintained in accordance with the approval granted to it by the RBI [Clause 5(i) of the regulations. In the case of NRIs, where the investment is made out of inward remittance or from funds held in the NRE/FCNR account of the investor, the maturity proceeds/repurchase price of units (after payment of taxes) may be credited to the NRE/FCNR/NRO/NRSR account of the non-resident investor maintained with an authorized dealer in India [Clause 5(ii) of the Regulations]. What about redemption proceeds where investments were made on a non-repatriable basis? Where the purchase of units is made on a non-repatriable basis, the maturity proceeds/repurchase price of units (after payment of taxes) will not qualify for repatriation and may be credited to the NRO/NRSR account of the non-resident investor [Clause 5(ii) of the Regulations].However the interest earned on NRO account is repatriable. Similarly, investments in units purchased in Rupees, where the investor was a resident of India and subsequently becomes a non-resident, will not qualify for repatriation of repurchase proceeds of units. The entire income distribution on the investment will, however, qualify for full repatriation. Investors are advised to contact their banks/tax consultants if they desire remittance of the income distribution on units abroad. Can NRI enroll in Systematic Investment Plan (SIP)? Yes. How to get updated on the performance of the scheme? NAV of all the schemes are updated on Association of Mutual Funds in India (AMFI) website. http://www.amfiindia.com/ Can I gift Mutual Fund units to my relatives in India? Yes. Certain funds do permit gifting of units. One should refer to the Scheme information Document of the specific fund to know the details. Can a Power of Attorney (POA) invest on behalf of the NRI investor? Yes, unlike banks where a POA holder cannot open an account on behalf of the NRI/FIIs, in a mutual fund the POA has the authority to invest on behalf of the investor and sign documents for initial and additional purchases as well as redemptions. Can a resident Indian have an NRI as nominee? Yes, the same rules apply for nominees to resident Indian accounts. An NRI can be a nominee to an account which is in the name of a resident Indian. Can an NRI fax a request followed by the original documents?

No, Units cannot be redeemed or allotted on the basis of fax applications. A request that lacks a valid signature cannot be processed due to legal restrictions.

What is the tax liability on redemptions?

Under Section 2(42A) of the Income Tax Act, units of the fund held as a capital asset for a period of more than 12 months immediately preceding the date of transfer, will be treated as a long-term capital asset for the computation of capital gains, thus qualifying for the long-term capital gains tax rate. In all other cases, it would be treated as a short-term capital asset and would be taxed at the short-term capital gains tax rate.

What is the tax liability for income received on mutual funds? As per Section 10(35) of the Income Tax Act, 1961, income received from mutual fund units specified under Section 10(23D) is exempt from income tax in India and the mutual funds are subject to deduction of distribution tax in debt oriented schemes. Hence all dividends are tax-free in the hands of non-resident investors and no Tax Deducted at Source (TDS) is applicable on the same. Is the indexation benefit available to NRIs? Yes, if units are held for more than 12 months i.e. on long-term capital gains. What is the tax liability for income received on mutual funds? As per section 10(35) of the Income Tax Act, 1961, income from mutual fund units specified under section 10(23D) is exempt from income tax in India. Debt oriented schemes of mutual funds are subject to deduction of dividend distribution tax. Hence all dividends are tax free in the hands of non- resident investors and no Tax deducted at Source (TDS) is applicable on the same. What are the Tax liabilities on Redemption? Under Section 2(42A) of the Income Tax Act, units of the fund held as a capital asset for a period of more than 12 months immediately preceding the date of transfer, will be treated as a long-term capital asset for the computation of capital gains, thus qualifying for the long-term capital gains tax rate. In all other cases, it would be treated as a short-term capital asset and would be taxed at the short-term capital gains tax rate. Long-term and short-term capital gains arising to NRI s /PIO s/ from the transfer of units of the Scheme will be taxable at the following rates: Short Term Capital Gains Rate applicable as per the prescribed slabs in the case of NRI s / PIO s and in the case of at the applicable rates 20 percent with the cost inflation index benefit or 10 percent without the cost inflation index benefit, whichever is lower

Long Term capital gains

* Plus surcharge as may be applicable (Refer Note 1). Tax Deduction at Source* Short Term Capital Gains Long Term capital gains As per the provisions of Section 195 of the Act, tax is required to be deducted at source at the rate of 30 percent if the payee is an NRI/PIO. Tax is required to be deducted under Section 195 read with Section 112(c) of the Act at the rate of 20 percent in case of NRIs/PIO s.

* Plus surcharge as may be applicable Wealth Tax Benefits Units held under the Schemes are not treated as assets under Section 2(ea) of the Wealth Tax Act, 1957 and are therefore not liable to wealth tax. Note 1: Surcharge is levied as under Rate Of Surcharge Applicable

Assessee

NRIs/ PIOs/ Non-Corporate FIIs Where the Taxable Income Is less than Rs Nil . 850,000 Per Annum NRIs/ PIOs/ Non-Corporate FIIs Where The Taxable Income Is In Excess Of Rs 850,000 Per Annum Corporate FIIs 10 Percent 2.5 Percent

Televison