Prahladrai Dalmia Lions

College
.

Sub:- Investment Analysis &

Portfolio Management .

Semester 6
Topic:- Mutual Funds.
Presented to :- Prof. Neha Sarviya.

Presented by
1.
2.
3.
4.
5.
6.

Aditya Chaturvedi
Ameya Dumbre
Arzoo Bansal
Akshit Bohra
Yash Agarwal
Abhay Dhelia

Index
History
Definition
Why to select mutual funds
Return risk matrix
History of mutual funds in india
Advantages
Disadvantages
Types of mutual funds
Risk factor
Fund structure
Companies offering mutual funds
Bibliography

History
There are a lot of investments avenues
available today in the financial market for an
investor with an investable surplus.
He can invest in bank deposits, corporate
debentures and bonds where there is low risk
but low returns.
These investors have found a good shelter
with the mutual funds.
A mutual fund is a common pool of money
into which investors place their contributions
that are to be invested in accordance with a
stated objectives.

The ownership of this fund is thus joint or

mutual; this fund belongs to all investors.
A single investors ownership of the fund is
in the same proportion as the amount of
contribution made by him or her bears to
the total amount of the funds.
The objective sought to be achieved by
Mutual Fund is to provide an opportunity for
lower income groups to acquire without
much difficulty financial assets.

Definition
Mutual funds are collective savings and
investment vehicles where savings of
small investors are pooled together to
invest for their mutual benefits and returns
distributed proportionately.
It is also called as capital appreciation
funds.

Why to select Mutual fund

Mutual funds provide professional
management, diversification, convenience
and liquidity.
That does not mean mutual fund are risk
free.
This is because the money that is pooled in
are not invested only in debts fund which
are less riskier but are also invested in stock
market which involves a higher risk but can
expect higher returns.

Return Risk Matrix

HIGHER RISK
MODERATE RETURS
VENTUR
E
CAPITAL

BANK
FD
LOWER RISK
LOWER RETURNS

HIGHER RISK
HIGHER RETURNS
EQUIT
Y

PORTAL
SAVING
S

MUTUA
L
FUNDS
LOWER RISK
HIGHER RETURNS

History of mutual funds in

India
Started in 1963 with the formation of Unit
Trust of India, at the initiative of GoI And
RBI.
It can be classified in 4 distinct phases: 1. first phase(1964-87)
2. second phase(1987-93)
3. third phase(1993-03)
4. fourth phase(2003 & continue)

Advantages of mutual fund

Portfolio diversification
Professional management
reduction/diversification of risk
Reduction of transaction cost
Liquidity
Convenience and flexible
Tax benefit
choice of scheme
Transperancy

disadvantages
No control over cost
no tailor-made portfolio
Managing a portfolio of funds
The wisdom of professional management
No control
Dilution
Buried costs

Types of mutual fund

By structure

By nature

By investment objective

Other scheme

Risk factor
The risk return trade off
Market risk
Credit risk
Inflation risk
Interest rate risk
Political/government policy risk
Liquidity risk

FUND STRUCTURE

FUND SPONSOR

TRUSTEE

ASSET MANAGEMENT COMPANY

DEPOSITORY ,AGENT,CUSTODIAN

Companies offering mutual

funds
Kotak mahindra
Pnb bank
Icici
Sbi
Motilal oswal
Idbi
Uti
Hdfc
Tata
Sun birla
And many more..

bibliography

Google

Outlook magazine

Shareslide.com

Economic times

 Thank

you