Made By:: Anshul Gupta Ankit Gupta Mohit Jain Prashant Priyadarshi Prateek Mishra Rahul Sharma
Made By:: Anshul Gupta Ankit Gupta Mohit Jain Prashant Priyadarshi Prateek Mishra Rahul Sharma
Made By:: Anshul Gupta Ankit Gupta Mohit Jain Prashant Priyadarshi Prateek Mishra Rahul Sharma
MADE BY:
ANSHUL GUPTA ANKIT GUPTA MOHIT JAIN PRASHANT PRIYADARSHI PRATEEK MISHRA RAHUL SHARMA
MUTUAL FUNDS
A mutual fund is a financial intermediary that allows a group of investors to pool their money together with a predetermined objective. The mutual fund will have a fund manager who is responsible for investing the pooled money into specific securities. when you invest in a mutual fund, you are buying shares of the mutual fund and become a shareholder of the fund. Investment may be diversified to spread risk and maximize returns.
MF can enter into underwriting agreement. No guaranteed return in scheme. Money collected in scheme shall be invested in transactional securities in money market or capital market or private placed debts or securitized debts. Scheme funds not to be used in option trading or carry forward transaction. Every close-ended scheme listed on stock exchange. Over-subscription case of scheme, preference given to applicants applying for upto 5,000 units. Wounding up of open-ended scheme after expiration of fixed period.
MF shall not borrow money except for temporary liquidity needs In open-ended scheme, repurchase and sale price published at least once a week Unquoted debt instruments not exceed 10% in growth funds and 40% in income funds MF permitted to participate in Securities Lending Scheme of SEBI MF allowed to invest in ADRs/GDRs Issued by Indian companies. MF issued several guidelines in respect of advertisements. Prescribed guidelines for valuation of investments.
BENEFITS OF A SIP
Power of compounding by investing now. Cost Averaging. Convenience. Disciplined Investment
Balanced funds
Income fund and Growth fund Exchange traded funds (ETFs)
Expense ratio= total annual operating expenses average assets under management
Loads: Difference between NAV and Purchase/Sale price of units. a) Entry loadPayable at the time of purchase of units by the investor. b) Exit loadMutual funds may charge an exit load from the investor at time of repurchase of units. Repurchase price is less than NAV.
ROLE OF SPONSOR
Sponsor is a person who sets up a Mutual fund. Sponsors settle the Trust and execute Trust Deed.
CUSTODIAN
A trust company, bank or similar financial institution responsible for holding and safeguarding the securities owned within a mutual fund. A mutual funds custodian may act as mutual funds transfer agent, maintaining record of shareholders transactions and balances. Since mutual funds are essentially a large pool of funds from many different investors, it requires a third party custodian to hold and safeguard the securities that are mutually owned by the fund investors.
A firm that invest the pooled funds of retail investors in securities in line with the stated investment objectives,for a fee, The investment company provides more diversification,liquidity & professional service that are normally available to individual investors.
ROLE OF AN AMC
AMC is the fund manager for managing Mutual Fund Assets AMC floats Different Mutual Fund Schemes AMC is accountable to Trustees AMC charges Asset Management fees subject to ceiling prescribed by SEBI Asset Management agreement between AMC and TRUSTEES.
% limit
2.50%
Next Rs 3,000 m
Next Rs 3,000 m
2.25%
2.00%
Over Rs 7,000 m
1.75%
OFFER DOCUMENT
Offer document of a MF scheme is like a Prospectus issued by AMC inviting Public to units of MF scheme.
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