Presentation

on
Benefits of diversification- mutual funds

NATIONAL LAW UNIVERSITY, RAJASTHAN

Submitted to:
Dr. Rituparna Das
(Associate Professor)

Submitted by:
Charul Jangid
Megha Choudhary
Shashank Ojha

BENEFITS OF DIVERSIFICATIONMUTUAL FUNDS

PRESENTED BY:
CHARUL JANGID
MEGHA CHOUDHA
SHASHANK OJHA

CONTENTS

Introduction
Mutual fund
What is diversification?
Diversified fund
Main categories of funds
Benefits of diversification in mutual
funds
Concerns of diversification in mutual
funds
Conclusion

INTRODUCTION

MUTUAL FUND
An investment vehicle that is made up of
a pool of funds collected from many
investors for the purpose of investing in
securities such as stocks, bonds, money
market instruments and similar assets. Eg
:- American fund , Black rock , HDFC
mutual fund

Dont put all your eggs in one

basket

WHAT IS
DIVERSIFICATION?
Act or practice of
Manufacturing a variety of products.
Investing in a variety of securities.
Selling a variety of merchandise etc.
so that a failure in or an economic slump
affecting one of them will not be
disastrous

DIVERSIFIED FUND
A mutual fund allows for diversification
between many different stocks and also
allows for diversification between
various sectors, styles etc. This
diversification allows investors to reduce
risk of one particular stock or sector but
also allows for more potential reward by
offering wider exposure to various stocks
and sectors.

MAIN CATEGORIES OF
FUNDS

BENEFITS OF DIVERSIFICATION IN
MUTUAL FUNDS

Economies of scale
Liquidity
Spreading risk
Return
Tax benefits

CONCERNS OF DIVERSIFICATION IN
MUTUAL FUNDS

Over diversification
Dilution
Cost
Impact of market players and industry
Less focus on particular aspect

CONCLUSION
Diversified funds can potentially offset the
impact of poor market performance on
the overall portfolio and also one try and
remain diversified within each type of
investment.

THANKYOU