A PRESENTATION ON

MUTUAL FUNDS
P R E SE NT ED B Y: S A HI B ( A 0 5 )
WHAT IS A MUTUAL FUND?
• A Mutual Fund collects the money from investors and
invests money on their behalf.

• Investors having a common financial goal pool their

money into a common fund.

• Investors can choose a mutual fund scheme based on

their financial goal and start investing to achieve the
goal.
Challenges involved investing
directly in Capital Market
• Time

• Expertise

• Lack of information

• Volatility
MYTHS ABOUT MUTUAL FUNDS
• Mutual Funds only invests in shares.

• Mutual Funds are prone to very high risks.

• Mutual Funds are not reliable and people rarely

invest in them.
HOW A MUTUAL FUND WORKS?
WHAT IS NET ASSET VALUE
(NAV)?
• The Net Asset Value (NAV) of a mutual fund is the price
at which units of a mutual fund are bought or sold. It is
the market value of the fund after deducting its
liabilities.
• NAV indicates the market value of the units in a fund.
So, it helps an investor keep track of the performance
about the mutual fund.
• Net Asset Value (NAV) = (Assets – Liabilities) / (Number
of Outstanding units)
• Assets = Market value of mutual fund investments +
Receivables + Accrued Income
• Liabilities = Expenses
HOW DO YOU MAKE MONEY
FROM A MUTUAL FUND?

Capital appreciation

Interest / Dividend Income

21/07/2019
TYPES OF MUTUAL FUNDS
• On the basis of maturity

• On the basis of Investment objective

ON THE BASIS OF MATURITY
• Open ended Fund

• Closed ended Fund

• Interval Fund
ON THE BASIS OF INVESTMENT
OBJECTIVE
• Equity/Growth Funds

• Debt/Income Funds

• Balanced Funds

• Money Market Funds

• Gilt Funds
INVESTMENT IN MUTUAL FUNDS
THROUGH SIP
• Systematic Investment Plan is a method of
investing a fixed sum, at a regular interval, in a
mutual fund.
• Benefits of SIP:
• Rupee Cost Average
• Compounding
• No timing the market
• Disciplined savings

21/07/2019
BENEFITS OF INVESTING IN
MUTUAL FUNDS
• Professional Management
• Diversification
• Less investment cost
• High return potential
• Liquidity
• Transparency
• Flexibility
• Well Regulated
• Tax Benefits

21/07/2019
HOW TO INVEST IN MUTUAL
FUNDS
• Identify your investment needs

• Choose the right mutual fund

• Select the ideal mix of schemes

21/07/2019
COMMON REASONS FOR NOT
INVESTING
• I don’t have enough money to invest
• I am too busy making money to worry about
managing it
• I don’t have the time or expertise to follow the
market movements and make investments at the
right time

MUTUAL FUNDS
is the only answer to all reasons.

21/07/2019
THANK YOU

21/07/2019