GROUP-REFORMERS

MENTOR-Ms. SHILPI SAXENA

MENTEES-

VARTIKA

DIVYANSH

AMIT PANDEY

ANKUR BURMAN

ABID KHAN

GOKUL

DHANANJAY

SUMIT

VINAY

TOPIC-

RETAILING

MUTUAL

FUND

MUTUAL FUND-

• A mutual fund is a professionally

managed type of collective investment that

pools money from many investors to buy

stocks, bonds, short-term money market

instruments, and/or other securities.

Mutual funds first became popular in the

United States in the 1920s.

TYPES

There are three basic types of registered

investment companies defined in the

Investment Company Act of 1940:-

a) open-end funds

b) unit investment trusts (UITs)

c) closed-end funds

a) OPEN-END MUTUAL

FUND-• Open-end mutual funds must be willing to

buy back their shares from their investors

at the end of every business day at the net

asset value computed that day.

b)CLOSED-END FUNDS

• Closed-end funds generally issue shares

to the public only once, when they are

created through an initial public offering.

Their shares are then listed for trading on

a stock exchange.

c)UNIT INVESTMENT

TRUST-• Unit investment trusts or UITs issue

shares to the public only once, when they

are created. Investors can redeem shares

directly with the fund (as with an open-end

fund) or they may also be able to sell their

shares in the market.

Process Of Pooling Of Money

in mutual fund

People’s involve in mutual

fund distributor/agent

banker

mutual fund house people

COMPANIES DEALS IN MUTUAL FUND

Kotak Opportunities Fund:

• It is a diversified aggressive equity fund.

• It is a open-ended equity scheme

• Since the ratio is high it implies the risk is high

• As the returns are more in Kotak Opportunities compare

to other Four AMC’s

• It is suitable for investors looking for medium risk and

moderate returns with in a time period of 1-3 years.

Franklin India Flexi Cap Fund:

• It is a diversified equity fund.

• It is a open-ended equity scheme

• Since the ratio is high it implies the risk

is high

• In Franklin the returns are more compare

to other Three AMC’s (HDFC, RELIANCE,

HSBC)

• Reliance Equity Opportunities Growth

Fund:

• It is a diversified equity fund.

• It is a open-ended equity scheme

• Since the ratio is high it implies the risk

is high

• In Reliance Equity Opportunities the

returns are medium compare to other

AMC’s

• HSBC India Opportunities Fund:-

• It is a diversified equity fund.

• It is a open-ended equity scheme

• In HSBC the returns are lesser than other

AMC’s

• It is a low risky fund

HDFC Core & Satellite Fund:

• It is a diversified equity fund.

• It is a open-ended equity scheme

• In HDFC the returns are low compare to

other AMC’s

• It is a value based fund

• It is a low risky fund

Current State

• India has been amongst the fastest growing

markets for mutual funds since 2004, witnessing

a CAGR of 29 percent in the five year period

from 2004 to 2008 as against the global average

of 4 percent. The increase in revenue and

profitability, however, has not been

commensurate with the AUM growth in the last

five years.

Challenges and Issues

• Low customer awareness levels and

financial literacy pose the biggest

challenge to channelizing household

savings into mutual funds. Further, fund

houses have shown limited focus on

increasing retail penetration and building

retail AUM.

Future Outlook in a Dynamic

Environment

• KPMG in India is of the view that the

industry AUM is likely to continue to grow

in the range of 15 to 25 percent from the

period 2010 to 2015 based on the pace of

economic growth.

ADVANTAGES-

Mutual funds have advantages compared to direct

investing in individual securities. These include:

• Increased diversification

• Daily liquidity

• Professional investment management

• Ease of comparison

• Services

DISADVANTAGES-

Mutual funds have disadvantages as well,

which include:

• Fees

• Less control over timing of recognition of

gains

• Less predictable income

• No opportunity to customize

Thank you