O' Level Course From: N.I.E.L.I.T (National Institute of Electronics and Information Technology), Lucknow

‘O’ Level Course
From
N.I.E.L.I.T
(NATIONAL INSTITUTE OF ELECTRONICS AND
INFORMATION TECHNOLOGY),Lucknow
A Project report
On
Mutual funds
Guide name: MOHD. SABIR

Study center: NIELIT LUCKNOW
Submitted by: SHALINI
Reg. number: 1175400
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A project report
on
information about mutual funds
Guide name: MOHD. SABIR

Study center: NIELIT LUCKNOW
Submitted by: SHALINI
Reg. number: 1175400
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ACKNOWLEDGEMENT
Now, when my project “Information about mutual funds” has been
successfully completed I would like to thank all those people who made all
this possible.
First, I would like to thank Dr. D.K. Mishra,OFFICER IN-CHARGE
NIELIT,LUCKNOW for his relentless co-operation. I acknowledge my deepest
gratitude for my guide ,Mohd. Sabir for his connoisseur Guidence ,limitess
support endless optimism and motivation while carrying out his project
work.
I express my heartfelt thanks to my dear friends for standing by me in all
times and all staff members for NIELIT Lucknow for providing the necessary
facilities and valuable data set to accomplish the project work.
I am deeply indebted in gratitude to my parents for their faith in me
throughout , for their inspirations and for being with me through all troubles
and tribulations. I dedicated my work to them.I also thanks my brother and
sister for his support all along.
Last but not least I thank all those who have helped me directly me directly
or indirectly at various of this project work.
SHALINI
Course Name: ‘O’ Level
Reg. Number: 1175400
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CERTIFICATE
This is to certify that the Project/Dissertation entitled, “ INFORMATION ABOUT
MUTUAL FUNDS” is a bonafide work done by SHALINI(Registration no.-1175400)
in fulfillment of ‘O’ Level examination and has been carried out under my direct
supervision and guidance.This report or a similar report on the topic has not been
submitted for any other examination and does from part of any other course
undergone by the candidate.
.............................. …………………………………………….
Signature of Guide signature of officer in-charge
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SYSTEM SPECIFICATION
HARDWARE:
Processor: AMD A4-3330MX APU
Clock speed: 2.20 GHZ
System Bus: 32-Bit
RAM: 2.00GB
HDD: 500GB
SORTWARE:
Operating system: MS Window 7
Browser: Google Chrome
Editor: Notepad
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INDEX
1. Screenshot: page no.
Home page ………………………………… .. 7
What are mutual funds? ………………………………… .. 8
History of mutual funds in india. ………………………………… .. 9-10
Myths & facts about mutual funds .………………………………… .. 11
Equity funds. ………………………………… .. 12-13
Debt funds. ………………………………… .. 14
Liquid funds .………………………………… .. 15
Balance funds ………………………………… .. 16-17
Exchange trade funds(ETTS). ………………………………… .. 18
Funds of funds(FOF) .………………………………… .. 19
Gold ETF .………………………………… .. 20
2. Coding:
HTML Coding ………………………………… .. 27-48
CSS coding ………………………………… .. 49-54
3. Bibligraphy: ..…..………………………………… .. 55
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MUTUAL FUNDS
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WHAT ARE MUTUAL FUNDS?
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HISTORY OF MUTUAL FUNDS IN INDIA
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MYTH & FACTS ABOUT MUTUAL FUNDS
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EQUITY FUNDS
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DEBT FUNDS
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LIQUID FUNDS
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BALANCE FUNDS
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EXCHANGE TRADE FUNDS(ETFS)
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FUND OD FUNDS(FOF)
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GOLD ETF
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CODING
<html>
<head>
<title>home page</title>
<link type="text/css" rel="stylesheet" href="headings.css">
</head>
<body bgcolor="#fc9cec">
<div class="pageHeader">
<img id="logo" src="1.jpg" width=250 height=150 alt="logo"/>
<h4 style="text-align:center;">Mutual Funds<br></h4>
</div>
<br><p><b>
<div id="Navbar">
<ul>
<li><a href="WAMF.html"
"target="_blank" align="left">WHAT ARE MUTUAL FUNDS?</a></li><br><br>
<li><a href="history.html">HISTORY OF MUTUAL FUNDS IN
INDIA</a></li><br><br>
<li><a href="M&F.html">MYTHS & FACTS ABOUT MUTUAL
FUNDS</a></li><br><br>
<li><a href="ef.html">EQUITY FUNDS</a></li><br><br>
<li><a href="D&F.html">DEBT FUNDS</a></li><br><br>
<li><a href="L&F.html">LIQUID FUNDS</a></li><br><br>
<li><a href="B&F.html">BALANCED FUNDS</a></li><br><br>
<li><a href="E&T&F.html">EXCHANGE TRADED FUNDS (ETFS)</a></li><br><br>
<li><a href="F&F.html">FUND OF FUNDS (FOF)</a></li><br><br>
<li><a href="GOLDETF.html">GOLD ETF</a></li><br><br>
</ul>
</div>
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WHAT ARE MUTUAL FUNDS?
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<h4 style="text-align:center;">What are Mutual funds?<br></h4>
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<p>&emsp; A <b>mutual fund</b> is a pool of money managed by a professional
Fund Manager.</p>
<p>&emsp;It is a trust that collects money from a number of investors who share
a common investment objective and invests the same in equities, bonds, money
market instruments and/or other securities. And the income / gains generated
from this collective investment is distributed proportionately amongst the
investors after deducting applicable expenses and levies, by calculating a
scheme’s “Net Asset Value” or NAV. Simply put, the money pooled in by a large
number of investors is what makes up a Mutual Fund.</p>
<p>&emsp;Here’s a simple way to understand the concept of a Mutual Fund Unit.
Let’s say that there is a box of 12 chocolates costing 40. Four friends decide to buy
the same, but they have only 10 each and the shopkeeper only sells by the box. So
the friends then decide to pool in 10 each and buy the box of 12 chocolates. Now
based on their contribution, they each receive 3 chocolates or 3 units, if equated
with Mutual Funds.
And how do you calculate the cost of one unit? Simply divide the total amount
with the total number of chocolates: 40/12 = 3.33.
So if you were to multiply the number of units (3) with the cost per unit (3.33),
you get the initial investment of 10.</p>
<p>Mutual funds are ideal for investors who either lack large sums for
investment, or for those who neither have the inclination nor the time to research
the market, yet want to grow their wealth. The money collected in mutual funds
is invested by professional fund managers in line with the scheme’s stated
objective. In return, the fund house charges a small fee which is deducted from
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the investment. The fees charged by mutual funds are regulated and are subject
to certain limits specified by the Securities and Exchange Board of India
(SEBI).</p>
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HISTORY OF MUTUAL FUNDS
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<title>History of mutual funds in India</title>
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<h4 style="text-align:center;">History of mutual funds in India<br></h4>
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<p>&emsp; A strong financial market with broad participation is essential for a
developed economy. With this broad objective India’s first mutual fund was
establishment in 1963, namely, Unit Trust of India (UTI), at the initiative of the
Government of India and Reserve Bank of India ‘with a view to encouraging saving
and investment and participation in the income, profits and gains accruing to the
Corporation from the acquisition, holding, management and disposal of
securities’.</p>
<p>&emsp;In the last few years the MF Industry has grown significantly. The
history of Mutual Funds in India can be broadly divided into five distinct phases as
follows:</p>
<table border="1">
<trbgcolor="#C700E5">
<th><font color="white"><font size="5">FIRST PHASE-1964-
1987</font></th></tr>
<trbgcolor="#eaebf2">
<td><font color="black" ><font size="4">The Mutual Fund industry in India
started in 1963 with formation of UTI in 1963 by an Act of Parliament and
functioned under the Regulatory and administrative control of the Reserve Bank
of India (RBI). In 1978, UTI was de-linked from the RBI and the Industrial
Development Bank of India (IDBI) took over the regulatory and administrative
control in place of RBI. Unit Scheme 1964 (US ’64) was the first scheme launched
by UTI. At the end of 1988, UTI had 6,700 crores of Assets Under Management
(AUM).</font></td>
</tr>
</table>
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<table border="1">
<th><font color="white"><font size="5">SECOND PHASE-1987-1993- ENRTY OF
PUBLIC SECTOR MUTUAL FUNDS</font></th></tr>
<td><font color="black"><font size="4">The year 1987 marked entry of public
sector mutual funds set up by Public Sector banks and Life Insurance Corporation
of India (LIC) and General Insurance Corporation of India (GIC). SBI Mutual Fund
was the first ‘non-UTI’ mutual fund established in June 1987, followed by Canbank
Mutual Fund (Dec. 1987), Punjab National Bank Mutual Fund (Aug. 1989), Indian
Bank Mutual Fund (Nov 1989), Bank of India (Jun 1990), Bank of Baroda Mutual
Fund (Oct. 1992). LIC established its mutual fund in June 1989, while GIC had set
up its mutual fund in December 1990. At endof 1993, the MF industry had assets
under management of 47,004 crores.</font></td>
</tr>
</table>
<table border="1">
<th><font color="white"><font size="5">THIRD PHASE-1993-2003- ENTRY OF
PRIVATE SECTOR MUTUAL FUNDS</font></th></tr>
<td><font color="black"><font size="4">The Indian securities market gained
greater importance with the establishment of SEBI in April 1992 to protect the
interests of the investors in securities market and to promote the development
of, and to regulate, the securities market.<br><br>
<P>In the year 1993, the first set of SEBI Mutual Fund Regulations came into
being for all mutual funds, except UTI. The erstwhile Kothari Pioneer (now
merged with Franklin Templeton MF) was the first private sector MF registered in
July 1993. With the entry of private sector funds in 1993, a new era began in the
Indian MF industry, giving the Indian investors a wider choice of MF products. The
initial SEBI MF Regulations were revised and replaced in 1996 with a
comprehensive set of regulations, viz., SEBI (Mutual Fund) Regulations, 1996
which is currently applicable.</P>
<P>The number of MFs increased over the years, with many foreign sponsors
setting up mutual funds in India. Also the MF industry witnessed several mergers
and acquisitions during this phase. As at the end of January 2003, there were 33
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MFs with total AUM of 1,21,805crores, out of which UTI alone had AUM of 44,541
crores.</p></font></td>
</tr>
</table>
<table border="1">
<th><font color="white"><font size="5">FOURTH PHASE-SINCE FEBUARY 2003-
APRIL 2014</font></th></tr>
<td><font color="black"><font size="4">In February 2003, following the repeal of
the Unit Trust of India Act 1963, UTI was bifurcated into two separate entities,
viz., the Specified Undertaking of the Unit Trust of India (SUUTI) and UTI Mutual
Fund which functions under the SEBI MF Regulations. With the bifurcation of the
erstwhile UTI and several mergers taking place among different private sector
funds, the MF industry entered its fourth phase of consolidation.
<P>Following the global melt-down in the year 2009, securities markets all over
the world had tanked and so was the case in India. Most investors who had
entered the capital market during the peak, had lost money and their faith in MF
products was shaken greatly. The abolition of Entry Load by SEBI, coupled with
the after-effects of the global financial crisis, deepened the adverse impact on the
Indian MF Industry, which struggled to recover and remodel itself for over two
years, in an attempt to maintain its economic viability which is evident from the
sluggish growth in MF Industry AUM between 2010 to 2013.</P></font></td>
</tr>
</table>
<table border="1">
<th><font color="white"><font size="5">FIFTH(CURRENT) PHASE-SINCE MAY-
2014</font></th></tr>
<td><font color="black"><font size="4">Taking cognisance of the lack of
penetration of MFs, especially in tier II and tier III cities, and the need for greater
alignment of the interest of various stakeholders, SEBI introduced several
progressive measures in September 2012 to "re-energize" the Indian Mutual Fund
industry and increase MFs’ penetration.
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<P>In due course, the measures did succeed in reversing the negative trend that
had set in after the global melt-down and improved significantly after the new
Government was formed at the Center.</P>
<P>Since May 2014, the Industry has witnessed steady inflows and increase in the
AUM as well as the number of investor folios (accounts).</P>
<P>&emsp;&emsp;*The Industry’s AUM crossed the milestone of 10 Trillion (10
Lakh Crore) <font color="red">for the first time</font> as on 31st May 2014 and
in a short span of two years the AUM size has crossed 15 lakh crore in July
2016.</P>
<P>&emsp;&emsp;*The overall size of the Indian MF Industry has grown from
3.26 trillion as on 31st March 2007 to 15.63 trillion as on 31st August 2016, the
highest AUM ever and a five-fold increase in a span of less than 10 years !!</P>
<P>&emsp;&emsp;*In fact, the MF Industry has more doubled its AUM in the last
4 years from 5.87 trillion as on 31st March, 2012 to 12.33 trillion as on 31st
March, 2016 and further grown to 15.63 trillion as on 31st August 2016.</P>
<P>&emsp;&emsp;*The no. of investor folios has gone up from 3.95 crore folios
as on 31-03-2014 to 4.98 crore as on 31-08-2016.</P>
<P>&emsp;&emsp;*On an average 3.38 lakh new folios are added every month in
the last 2 years since Jun 2014.</P>
<P>The growth in the size of the Industry has been possible due to the twin
effects of the regulatory measures taken by SEBI in re-energising the MF Industry
in September 2012 and the support from mutual fund distributors in expanding
the retail base.</P>
<P>MF Distributors have been providing the much needed last mile connect with
investors, particularly in smaller towns and this is not limited to just enabling
investors to invest in appropriate schemes, but also in helping investors stay on
course through bouts of market volatility and thus experience the benefit of
investing in mutual funds.</P>
<P>In fact, even though FY 2015-16 was not a very good year for the Indian
securities market, the MF Industry witnessed steady positive net inflows month
after month, even when the FIIs were pulling out in a big way. This was largely
because of the ‘hand-holding’ of the investors by the MF distributors and
convincing them to stay invested and/or invest at lower NAVs when the market
had fallen.</P>
<P>MF distributors have also had a major role in popularising Systematic
Investment Plans (SIP) over the years. In April 2016, the no. of SIP accounts has
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crossed 1 crore mark and currently each month retail investors contribute around
3,500 crore via SIPs.</P>
The graph indicates the growth of assets over the last 10 years.
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MYTHS & FACTS ABOUT MUTUAL FUNDS
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<title>MYTHS & FACTS ABOUT MUTUAL FUNDS</title>
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<h4 style="text-align:center;">MYTHS & FACTS ABOUT MUTUAL FUNDS<br></h4>
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<th><font color="white"><font size="5">MYTH : MUTUAL FUNDS ARE FOR
EXPERTS</font></th></tr>
<td><font color="black"><font size="4"><B>Fact </B>: In fact, Mutual funds are
meant for of common investors who may lack the knowledge or skill set to invest
in securities market. Mutual Funds are professionally managed by expert Fund
Managers after extensive market research for the benefit of investors. A mutual
fund is an inexpensive way for investors to get a full-time professional fund
manager to manage their money.</font></td>
</tr>
</table>
<table border="1">
<th><font color="white"><font size="4">MYTH : INVESTING IN MUTUAL FUNDS IS
THE SAME AS INVESTING IN STOCK MARKET / MUTUAL FUND IS AN EQUITY
PRODUCT </font></th></tr>
<td><font color="black"><font size="4"><B>Fact </B>: Mutual Funds invest in
stock market (i.e., equities), bond market (corporate bonds as well as govt. bonds)
and Money Market instruments such as Treasury Bills, Commercial Papers,
Certificate of Deposit, Collateral Borrowing & Lending Obligation (CBLO) etc.
Many of these instruments are not available to retail investors due to large ticket
size of minimum order quantity (such as G-Secs) and hence, retail investors could
participate in such investments through mutual fund schemes</font></td>
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</tr>
</table>
<table border="1">
<th><font color="white"><font size="4">MYTH :ONE NEEDS A LARGE AMOUNT
OF MONEY TO INVEST IN MUTUAL FUNDS</font></th></tr>
<td><font color="black"><font size="4"><B>Fact</B> : Absolutely incorrect. One
could start investing mutual funds with just 5000 for a lump-sum / one-time
investment with no upper limit and 1000 towards subsequent / additional
subscription in most of the mutual fund schemes. And for Equity linked Savings
Schemes (ELSS), the minimum amount is as low as 500.
<P>In fact, one could invest via Systematic Investment Plan ( SIP) with as little as
500 per month for as long as one wishes to.</P></tr>
</table>
<table border="1">
<th><font color="white"><font size="4">MYTH : ONE NEEDS TO HAVE A DEMAT
ACCOUNT TO INVEST IN MUTUAL FUNDS</font></th></tr>
<td><font color="black"><font size="4"><B>Fact </B>: Holding mutual fund Units
in Demat mode is absolutely optional, except in respect of Exchange Traded
Funds. For all other schemes, including the close-ended listed schemes like Fixed
Maturity Plans (FMPs), it is entirely upto the investor whether to hold the units in
a Demat mode or in conventional physical accountant statement
mode.</P></font></td>
</tr>
</table>
<table border="1">
<th><font color="white"><font size="4">MYTH : A SCHEME WITH A HIGHER NAV
HAS REACHED ITS PEAK ! </font></th></tr>
<td><font color="black"><font size="4"><B>Fact</B> : This is a very common
misconception because of the general association of Mutual Funds with shares.
One needs to keep in mind that the NAV of a scheme is nothing but a reflection of
the market value of the underlying shares held by the fund on any day. Mutual
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Funds invest in shares, which may be bought or sold whenever deemed
appropriate by the Fund Manager depending on the scheme’s investment
strategy (Buy-Hold-Sell). If the Fund Manager feels that a particular stock has
peaked, he can choose to sell it.
<P>A high NAV does not mean the fund is expensive. In fact, high NAV indicates a
good performance of the scheme over the years.</P>
<p>&emsp;</p>
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EQUITY FUNDS
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<h4 style="text-align:center;">Equity funds<br></h4>
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<h2>WHAT IS AN 'EQUITY FUND'</h2>
<p>&emsp;An equity fund is a mutual fund scheme that invests predominantly in
equity stocks.</p>
<p>&emsp;In the Indian context, as per current SEBI Mutual Fund Regulations, an
equity mutual fund scheme must invest at least 65% of the scheme’s assets in
equities and equity related instruments.</p>
<p>&emsp;Under the tax regime in India, equity funds enjoy certain tax
advantages (such as, there is no incidence of long term capital gains tax on equity
shares or equity funds which are held for at least 12 months from the date of
acquisition). As per current Income Tax rules, an <b>"Equity Oriented Fund"</b>
means a Mutual Fund Scheme where the investible funds are invested in equity
shares in domestic companies to the extent of more than 65% of the total
proceeds of such fund.</p>
<p>&emsp;An Equity Fund can be actively managed or passively managed. Index
funds and ETFs are passively managed.</p>
<p>&emsp;Equity mutual funds are principally categorized according to company
size, the investment style of the holdings in the portfolio and geography.</p>
<p>&emsp;The size of an equity fund is determined by a market capitalization,
while the investment style, reflected in the fund's stock holdings, is also used to
categorize equity mutual funds.</P>
<p>&emsp;Equity funds are also categorized by whether they are domestic
(investing in stocks of only Indian companies) or international (investing in stocks
of overseas companies). These can be broad market, regional or single-country
funds.</P>
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<p>&emsp;Some specialty equity funds target business sectors, such as health
care, commodities and real estate and are known as Sectoral Funds.</P>
<h2>WHAT ARE DIFFERENT CATEGORIES OF EQUITY FUNDS</h2>
<p>&emsp;There are different types of equity mutual fund schemes and each
offers a different type of underlying portfolio that have different levels of market
risk.</P>
<p>&emsp;<b>Large Cap Equity Funds</b> invest a large portion of their corpus
in companies with large market capitalization are called large-cap funds. This type
of fund is known to offer stability and sustainable returns, over a period of
time.</P>
<p>&emsp;Large Cap companies are generally very stable and dominate their
industry. Large-cap stocks tend to hold up better in recessions, but they also tend
to underperform small-cap stocks when the economy emerges from a recession.
Large-cap tend to be less volatile than mid-cap and small-cap stocks and are
therefore considered less risky.</P>
<p>&emsp;<b>Mid-Cap Equity Funds</b> invest in stocks of mid-size companies,
which are still considered developing companies. Mid-cap stocks tend to be riskier
than large-cap stocks but less risky than small-cap stocks. Mid-cap stocks,
however, tend to offer more growth potential than large-cap stocks.</P>
<p>&emsp;<b>Small Cap </b>Funds invest in stocks of smaller-sized
companies.<b> Small cap</b> is a term used to clssify companies with a relatively
small market capitalization. However, the definition of small cap can vary among
market intermediaries, but it is generally regarded as a company with a market
capitalization of less than 100 crores. Many small caps are young companies with
significant growth potential. However, the risk of failure is greater with small-cap
stocks than with large-cap and mid-cap stocks. As a result, small-cap stocks tend
to be the more volatile (and therefore riskier) than large-cap and mid-cap stocks.
Historically, small-cap stocks have typically underperformed large-cap stocks
during recessions but have outperformed large-cap stocks as the economy has
emerged from recessions.</P>
<p>&emsp;The smallest stocks of the small caps are called micro-cap stocks.
While the opportunity for these companies to experience extreme growth is
great, the risk to lose a large amount of money is also possible</p>
<p>&emsp;<b>Multi Cap Equity Funds</b> or <b>Diversified Equity Funds</b>
invests in stocks of companies across the stock market regardless of size and
sector. These funds provide the benefit of diversification by investing in
companies spread across sectors and market capitalisation. They are generally
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meant for investors who seek exposure across the market and do not want to be
restricted to any particular sector. They invest in companies across different
market caps and hence reduce the amount of risk in the fund. Diversification
helps prevent events that could affect a single sector for affecting the fund, and
hence reduce risk.</p>
<p>&emsp;<b>Thematic Equity Funds:</b> These funds invest in securities of
specific sectors such as Information Technology, Banking, Service and pharma
sector etc., which is specified in their scheme information documents. So, the
performance of these schemes depends on the performance of the respective
sector. These funds may give higher returns, but they also come with increased
risks.</p>
<h2>EQUITY LINKED SAVINGS SCHEME (ELSS):</h2>
<p>&emsp;Equity-Linked Savings Scheme (ELSS) is an equity mutual fund
investment that invests at least 80 per cent of its assets in equity and equity-
related instruments. ELSS can be open-ended or close ended. Investments in an
ELSS qualify for tax deductions under Section 80C of the Income Tax Act within
the overall limit of 1.5 lakh. The amount you invest in ELSS is deducted from your
taxable income, which helps you lower the amount of incometax you are liable to
pay. Investments in ELSS are subject to a three-year lock-in period and the returns
from the scheme, i.e. dividends and capital gains, are tax-free.</p>
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DEBT FUNDS
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<title>DEBT FUNDS</title>
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<h4 style="text-align:center;">DEBT FUNDS<br></h4>
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<font size="5">
<p>&emsp;IF YOU WANT TO AVOID THE MARKET FLUCTUATIONS OF EQUITY
STOCKS AND ARE RISK-AVERSE, CONSIDER INVESTING IN DEBT-ORIENTED
MUTUAL FUND SCHEMES.</p>
<table border="1">
<th><font color="white"><FONT size="5">WHAT IS DEBT
FUND?</font></th></tr>
<td><font color="black"><FONT size="4"><B>A debt</B> fund is a mutual fund
scheme that invests in fixed income instruments, such as Corporate and
Government Bonds, corporate debt securities, and money market instruments
etc. that offer capital appreciation. Debt funds are also referred to as Income
Funds or Bond Funds.</font></td>
</tr>
</table>
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<th><font color="white"><FONT size="5">HOW DEBT FUNDS
WORK?</font></th></tr>
<td><font color="black"><FONT size="4"><B>Debt funds</B> invest in either
listed or unlisted debt instruments, such as Corporate and Government Bonds at a
certain price and later sell them at a margin. The difference between the cost and
sale price accounts for the appreciation or depreciation in the fund’s net asset
value (NAV). Debt funds also receive periodic interest from the underlying debt
instruments in which they invest. In terms of return, debt funds that earn regular
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interest from the fixed income instruments during the fund’s tenure are similar to
bank fixed deposits that earn interest. This interest income gets added to a debt
fund on a daily basis. If the interest payment is received, say, once every year, it is
divided by 365 and the debt fund’s NAV goes up daily by this small amount. Thus,
a debt scheme’s NAV also depends on the interest rates of its underlying assets
and also on any upgrade or downgrade in the credit rating of its holdings.
<p>Market prices of debt securities change with movements in interest rates.
Let’s assume, your debt fund owns a security that yields 10 % interest.
If the interest rate in the economy falls, new instruments issued in the market
would offer this lower rate. To match this lower rate, there would be an increase
in the prices your fund’s underlying instruments as they have a higher coupon
(interest) rate. As a result of the increase in the debt instrument’s value, your
fund’s NAV, too, would increase.</P></font></td>
</tr>
</table>
<table border="1">
<th><font color="white"><FONT size="5">WHO SHOULD INVEST IN A DEBT
<td><font color="black"><FONT size="4"><B>Debt funds</B> are ideal for
investors who want regular income, but are risk-averse. Debt funds are less
volatile and, hence, are less risky than equity funds. If you have been saving in
traditional fixed income products like Term Deposits, and looking for steady
returns with low volatility, debt mutual funds could be a better option, as they
help you achieve your financial goals in a more tax efficient manner and therefore
earn better returns.</tr>
</table>
<table border="1">
<th><font color="white"><FONT size="5">HOW DEBT FUNDS ARE DIFFERENT
FROM OTHER MUTUAL FUND SCHEMES?</font></th></tr>
<td><font color="black"><FONT size="4">In terms of operation, debt funds are
not entirely different from other mutual fund schemes. However, in terms of
safety, they score higher than equity mutual funds. For instance, when the market
falls, the NAVs of your equity funds fall sharply, whereas in case of debt funds, the
36 | P a g e
fall is not as sharp. Having said that, debt funds can offer only moderate returns,
while equity funds, which are highly risky, offer high returns over longer time
horizon.</P></font></td>
</tr>
</table>
<p>&emsp;</p>
<p>&emsp;</p>
</body>
</html>
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LIQUID FUNDS
<html>
<head>
<title>LIQUID FUNDS</title>
</head>
<h4 style="text-align:center;">LIQUID FUNDS<br></h4>
</div>
<font size="5">
<p><B>Liquid Funds</B>, as the name suggests, invest predominantly in highly
liquid money market instruments and debt securities of very short tenure and
hence provide high liquidity. They invest in very short-term instruments such as
Treasury Bills (T-bills), Commercial Paper (CP), Certificates Of Deposit (CD) and
Collateralized Lending & Borrowing Obligations (CBLO) that have residual
maturities of up to 91 days to generate optimal returns while maintaining safety
and high liquidity. Redemption requests in these Liquid funds are processed
within one working (T+1) day.</P>
<p>The aim of the fund manager of a Liquid Fund is to invest only into liquid
investments with good credit rating with very low possibility of a default. The
returns typically take the back seat as protection of capital remains of utmost
importance. Control over expenses in the form of low expense ratio, good overall
credit quality of the portfolio and a disciplined approach to investing are some of
the key ingredients of a good liquid fund.</P>
<p>Most retail customers prefer to keep their surplus cash in Savings Bank
deposits as they consider the same to be safest and they could withdraw the
money at any time. Liquid Funds and Money Market Mutual Funds provide a
more attractive option. Surplus cash invested in money market mutual funds
earns higher post-tax returns with a reasonable degree of safety of the principal
invested and liquidity.</P>
<p>Liquid funds are preferred by investors to park their money for short periods
of time typically 1 day to 3 months. Wealth managers suggest liquid funds as an
ideal parking ground when you have a sudden influx of cash, which could be a
huge bonus, sale of real estate and so on and you are undecided about where to
38 | P a g e
deploy that money. Investors looking out for opportunities in equities and long-
term fixed income instruments can also park their money in the liquid funds in the
meantime. Many equity investors use liquid funds to stagger their investments
into equity mutual funds using the Systematic Transfer Plan (STP), as they believe
this method could yield higher returns.</P>
<p>Liquid Funds typically do not charge any exit loads. Investors are offered
growth and dividend options. Within dividend option, investors can choose daily,
weekly or monthly dividends depending on their investment horizon and
investment amount. Redemption payment is typically made within one working
day of placing the redemption request. With mutual funds going online, individual
investors with small sums can look at Liquid funds as an effective short-term
investment option over their savings bank account.</P>
<p>&emsp;</p>
<p>&emsp;</p>
</body>
</html>
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BALANCED FUNDS
<html>
<head>
<title>BALANCED FUNDS</title>
</head>
<h4 style="text-align:center;">BALANCED FUNDS<br></h4>
</div>
<font size="4">
<h2>WHAT IS A 'BALANCED FUND'</h2>
<font size="5"><p> A balanced fund combines equity stock component, a bond
component and sometimes a money market component in single portfolio.
Generally, these hybrid funds stick to relatively fixed mix of stocks and bonds that
reflects either a moderate, or higher equity, component, or conservative, or
higher fixed-income, component orientation</P>
<p>These funds invest in mix of equities and debt, giving the investor the best of
both worlds. Balanced funds gain from a healthy dose of equities but the debt
portion fortifies them against any downturn.</P>
<p>Balanced funds are suitable for a medium-term horizon and are ideal for
investors who are looking for a mixture of safety, income and modest capital
appreciation. The amounts this type of mutual fund invests into each asset class
usually must remain within a set minimum and maximum.</P>
<p>Although they are in the "asset allocation" family,balanced fund portfolios do
not materially change their asset mix. This is unlike life-cycle, target-date and
actively managed asset-allocation funds, which make changes response to an
investor's changing risk-return appetite and age
or overall investment market conditions.</P>
<h2>EQUITIES AND INFLATION</h2>
Investors who have dual investment objectives favour Balanced Funds. Typically,
retirees or investors with low risk tolerance prefer these funds for growth that
outpaces inflation and income that supplements current needs. While retirees
generally scale back risk as age advances, many individuals recognize the need for
40 | P a g e
equity exposure as life expectancies increase. Equities prevent erosion of
purchasing power and help ensure long-term preservation of retirement corpus
<h2>INCOME NEEDS</h2>
The bond component of a balanced fund serves two purposes: creating an income
stream and moderating portfolio volatility. Investment-grade bonds such as AAA
corporate bonds and Money market instruments interest income from periodic
payments, while large-company stocks offer dividend payouts to enhance yield.
Retired investors may take distributions in cash to bolster income from pensions
and personal savings.
<p>Secondarily, bonds hold much less volatility than stocks. Bondholders have a
claim against assets of a company while stocks represent ownership, bearing all
inherent risk if bankruptcy occurs. Hence, debt security prices do not move in
lockstep with equities, and their stability prevents wild swings in the share price
of a balanced fund.</p>
<h2>TAXATION</h2>
Equity-oriented Balanced funds have a larger portion of their corpus (at least
65%) invested in stocks and qualify for the same tax treatment as equity funds.
This means any capital gains are tax-free, if the investment is held for more than
one year. However, these funds are more volatile due to the higher allocation to
stocks.
<p>Debt-oriented balanced funds are less volatile and suit those with a lower risk
appetite. However, they offer lower returns and the gains are not eligible for tax
exemption. If the investment is held for less than three years, the capital gains are
treated as short term and taxed at the normal rates. But if the holding period
exceeds three years, the gains are considered as long term and are taxed at 20%
after indexation benefit, which can significantly reduce the tax.</p>
<p>&emsp;</p>
</body>
</html>
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EXCHANGE TRADED FUNDS (ETFS)
<html>
<head>
<title>EXCHANGE TRADED FUNDS (ETFS)</title>
</head>
<h4 style="text-align:center;">EXCHANGE TRADED FUNDS (ETFS)<br></h4>
</div>
<font size="4">
<table border="1">
<th><font color="white"><font size="5">WHAT IS AN EXCHANGE TRADED
FUNDS(ETF)?</font></th></tr>
<td><font color="black"><FONT size="4"><b>Exchange-traded funds (ETFs)</b>
are securities that closely resemble index funds, but can be bought and sold
during the day just like common stocks. These investment vehicles allow investors
a convenient way to purchase a broad basket of securities in a single transaction.
Essentially, ETFs offer the convenience of a stock along with the diversification of
a mutual fund.</font></td>
</tr>
</table>
<table border="1">
<th><font color="white"><font size="5">ARE ETFS ONLY FOR
STOCKS?</font></th></tr>
<td><font color="black"><FONT size="4">No. Any asset class that has a published
index and is liquid enough to be traded daily can be made into an ETF. Bonds, real
estate, commodities, currencies, and multi-asset funds are all available in an ETF
format. For instance, Mutual Funds in India offer Gold ETFs, where the underlying
investment is in physical gold.</P></font></td>
</tr>
</table>
<table border="1">
42 | P a g e
<th><font color="white"><font size="5">WHO SHOULD INVEST IN A DEBT
<td><font color="black"><FONT size="4">ETFs derive their liquidity first from
trading of the units in the secondary market and secondly through the in-kind
creation / redemption process with the fund in creation unit size.
Due to the unique in-kind creation / redemption process of ETFs, the liquidity of
an ETF is actually the liquidity of the underlying shares.</P></tr>
</table>
<table border="1">
<th><font color="white"><font size="5">WHY DO ETFS TRADE CLOSE TO THEIR
NAV?</font></th></tr>
<td><font color="black"><FONT size="4">ETFs have a very transparent portfolio
holding and predefined creation basket. This allows arbitrageurs create and
redeem units every day through the in-kind creation mechanism. arbitrageurs are
always in the market to take advantage any significant premium or discount
between ETF market price and its NAV by doing arbitragebetween the ETF and its
underlying portfolio. Thus, the open architecture ofETFs ensures that there no
significant premium or discount to NAV. At the same time, additional demand /
supply is absorbed due to the action of arbitrageurs.</P></font></td>
</tr>
</table>
</table>
<table border="1">
<th><font color="white"><font size="5">WHAT ARE THE BENEFITS OF INVESTING
IN ETFS?</font></th></tr>
<td><font color="black"><FONT size="4">ETFs combine the range of a diversified
portfolio with the simplicity of trading a single stock. Investors can purchase ETF
shares on margin, short sell shares, or hold for the long term. ETFs can be bought
/ sold easily like any other stock on the exchange through terminals across the
country.
43 | P a g e
Asset Allocation: Managing asset allocation can be difficult for individual investors
given the costs and assets required to achieve proper levels of diversification.
ETFs provide investors with exposure to broad segments of the equity markets.
They cover a range of style and size spectrums, enabling investors to build
customized investment portfolios consistent with their financial needs, risk
tolerance, and investment horizon. Both institutional and individual investors use
ETFs to conveniently, efficiently, and cost effectively allocate their assets.<br>
<br><b>Cash Equitisation:</b>
<p>Investors typically seek exposure to equity markets, but often need time to
make investment decisions. ETFs provide a "Parking Place" for cash that is
designated for equity investment. Because ETFs are liquid, investors can
participate in the market while deciding where to invest the funds for the longer-
term, thus avoiding potential opportunity costs. Historically, investors have relied
heavily on derivatives to achieve temporary exposure. However, derivatives are
not always a practical solution. The large denomination of most derivative
contracts can preclude investors, both institutional and individual, from using
them to gain market exposure. In this case and in those where derivative use may
be restricted, ETFs are a practical alternative.</b><br>
<br><b>Hedging Risks:</b>
<p>ETFs are an excellent hedging vehicle because they can be borrowed and sold
short. The smaller denominations in which ETFs trade relative to most derivative
contracts provides a more accurate risk exposure match, particularly for small
investment portfolios.</p><br>
</font></td>
</tr>
</table>
<p>&emsp;</p>
<p>&emsp;</p>
</body>
</html>
44 | P a g e
FUND OF FUNDS (FOF)
<html>
<head>
<title>FUND OF FUNDS (FOF)</title>
</head>
<h4 style="text-align:center;">FUND OF FUNDS (FOF)<br></h4>
</div>
<font size="5">
A <b>‘Fund Of Funds’ (FOF)</b> is an investment strategy of holding a portfolio of
other investment funds rather than investing directly in stocks, bonds or other
securities. An FOF Scheme of a primarily invests in the units of another Mutual
Fund scheme. This type of investing is often referred to as multi-manager
investment
<p>These schemes offer the investor an opportunity to diversify risk by spreading
investments across multiple funds. The underlying investments for a FoF are the
units of other mutual fund schemes either from the same mutual fund or other
mutual fund houses.</P>
<p>Experts believe fund of funds are generally better suited for smaller investors
that want to gain access to a range of different asset classes or for those whose
advisers do not have the expertise to make single manager
recommendations.</P>
<p>Under current Income Tax regime in India, a FOF is treated as a non-Equity
fund and consequently taxed accordingly. In other words, even though a FOF may
be investing in equity oriented funds, the FOF itself is not regarded as an equity
oriented fund, and consequently, the tax benefits currently available to an equity
fund are not available to an FOF. Consequently, in case of FOFs investing in equity
securities of domestic companies via EOFs, there is dual levy of Dividend
Distribution Tax (DDT), viz., when the domestic companies distribute dividends to
their shareholders and again, when the FOF distributes the dividends to its unit-
holders.</P>
<p>&emsp;</p>
<p>&emsp;</p>
45 | P a g e
</body>
</html>
46 | P a g e
GOLD ETF
<html>
<head>
<title>GOLD ETF</title>
</head>
<h4 style="text-align:center;">GOLD ETF<br></h4>
</div>
<font size="5">
A <b>Gold ETF</b> is an exchange-traded fund <b>(ETF)</b> that aims to track
the domestic physical gold price. They are passive investment instruments that
are based on gold prices and invest in gold bullion.
<p><b>In short, Gold ETFs</b> are units representing physical<b> gold</b> which
may be in paper or dematerialised form. One <b>Gold ETF</b> unit is equal to 1
gram of gold and is backed by physical <b>gold</b> of very high purity. Gold ETFs
combine the flexibility of stock investment and the simplicity of gold
investments.</p>
<p>Gold ETFs are listed and traded on the National Stock Exchange of India (NSE)
and Bombay Stock Exchange Ltd. (BSE) like a stock of any company. Gold ETFs
trade on the cash segment of BSE & NSE, like any other company stock, and can
be bought and sold continuously at market prices.</p>
<p>Buying Gold ETFs means you are purchasing gold in an electronic form. You
can buy and sell gold ETFs just as you would trade in stocks. When you actually
redeem Gold ETF, you don’t get physical gold, but receive the cash equivalent.
Trading of gold ETFs takes place through a dematerialised account (Demat) and a
broker, which makes it an extremely convenient way of electronically investing in
gold.</P>
<p>Because of its direct gold pricing, there is a complete transparency on the
holdings of a Gold ETF. Further due to its unique structure and creation
mechanism, the ETFs have much lower expenses as compared to physical gold
investments.<p>&emsp;</p>
<p>&emsp;</p>
47 | P a g e
</body>
</html>
48 | P a g e
CSS CODING 1
/*===========HEADER SECTION===========*/
.pageHeader{
background-color:#78f58d;
margin-left:5px;
margin-right:5px;
margin-top:5px;
margin-bottom:5px;
height:130px;
border-radius:5px;
box-shadow:inset 0 0 px #f5791b;
}
#logo{
float:left;
margin-left:5px;
margin-top:5px;
}
/*===========NAVBAR SECTION===========*/
#Navbarul {
padding:10px;
list-style-type:none;
text-align:left;
background-color:#fc9cec;
margin-left:5px;
margin-right:5px;
margin-top:0px;
margin-bottom:5px;
border-radius:5px;
}
#Navbarul li{
display:inline;
}
#Navbarul li a{
text-decoration:none;
font-family:arial;
padding:.4em 1em;
49 | P a g e
color:#fff;
background-color:#d900b5;
}
/*===========MAIN DIVS SECTION===========*/

.main{
background-color:#FFFFFF;
margin-left:5px;
margin-right:5px;
margin-top:5px;
margin-bottom:5px;
padding:5px;
font size:110%;
box-shadow:inset 0 0 10px #666666;
}
/*===========HEADING SECTION===========*/
h2{
font-size:150%;
color:black;
text-align:left;
}
h4{
font-size:400%;
text-align:center;
color:#fa0808;
font-family:"Mistral";
margin:0px;
position:relative;
top:50%;
-webkit-transform:traslateY(-50%);
-ms-transform:translateY(-50%);
transform:translateY(-50%);
}
h3{
50 | P a g e
font-size:400%;
text-align:right;
color:white;
font-family:"Pristina";
margin:0px;
position:relative;
top:50%;
}
h5{
font-size:120%;
text-align:center;
color:#808080;
font-family:"Dancing Script OT";
margin:0px;
position:relative;
top:50%;
}
51 | P a g e
CSS CODING 2
/*===========HEADER SECTION===========*/
.pageHeader{
background-color:#f76754;
margin-left:5px;
margin-right:5px;
margin-top:5px;
margin-bottom:5px;
height:160px;
border-radius:5px;
box-shadow:inset 0 0 px #f5791b;
}
#logo{
float:left;
margin-left:5px;
margin-top:5px;
}
/*===========NAVBAR SECTION===========*/
#Navbarul {
padding:10px;
text-align:left;
background-color:#fc9cec;
margin-left:5px;
margin-right:5px;
margin-top:0px;
margin-bottom:5px;
border-radius:5px;
}
#Navbarulli{
display:inline;
}
#Navbarul li a{
text-decoration:none;
font-family:arial;
52 | P a g e
padding:.4em 1em;
color:#fff;
background-color:#d900b5;
}
/*===========MAIN DIVS SECTION===========*/

.main{
background-color:#FFFFFF;
margin-left:5px;
margin-right:5px;
margin-top:5px;
margin-bottom:5px;
padding:5px;
font size:110%;
box-shadow:inset 0 0 10px #666666;
}
/*===========HEADING SECTION===========*/
h2{
font-size:150%;
color:black;
text-align:left;
}
h4{
font-size:500%;
text-align:center;
color:white;
margin:0px;
position:relative;
top:50%;
}
53 | P a g e
h3{
font-size:400%;
text-align:right;
color:white;
margin:0px;
position:relative;
top:50%;
}
h5{
font-size:120%;
text-align:center;
color:#808080;
font-family:"Dancing Script OT";
margin:0px;
position:relative;
top:50%;
}
54 | P a g e
BIBLIOGRAPHY
Internet Technology And Web Designing
[by-NIELIT]
55 | P a g e

O' Level Course From: N.I.E.L.I.T (National Institute of Electronics and Information Technology), Lucknow

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‘O’ Level Course

Guide name: MOHD. SABIR

Guide name: MOHD. SABIR

What are mutual funds? ………………………………… .. 8

History of mutual funds in india. ………………………………… .. 9-10

Myths & facts about mutual funds .………………………………… .. 11

Equity funds. ………………………………… .. 12-13

Debt funds. ………………………………… .. 14

Liquid funds .………………………………… .. 15

Balance funds ………………………………… .. 16-17

Exchange trade funds(ETTS). ………………………………… .. 18

Funds of funds(FOF) .………………………………… .. 19

Gold ETF .………………………………… .. 20

CSS coding ………………………………… .. 49-54

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Internet Technology And Web Designing

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