a project report on mf

8/9/2019 A Project Report on Mf

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EXECUTIVE SUMMARY

With no of working people increasing per family the income of the households have increased and as a

result number of investment tools have increased and so is the demand for sound professional advice

on investment tools. Investment options are insurance, bank fixed deposits, PPF, MUTUAL FUND, NSC

etc.

MFs are essential investment vehicles where the number of investors who share a common financial

goal pools their saving together and invest accordingly. Each unit of any of the various schemes

represent the proportion of pool owned by the unit holder (investor). There are number of mutual fund

companies in India. NAV (net asset value) i.e. nothing but appreciation or reduction in net asset value of

the concerned scheme. This declared by the company from time to time the mutual schemes are

managed by respective ASSET MANAGEMENT COMPANIES (AMC). These AMC are either alone or in

collaboration with reputed international companies?

Mutual fund an investment vehicle with the moderate risk and high returns. What have investor gone

trough in past year or so and how investor shou ld go about in present situation.


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INTRODUCTION


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THE HISTORY OF MUTUAL FUNDS


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STRUCTURE OF THE INDIAN MUTUAL FUND INDUSTRY

Pvt. Sector

28%

Institutions

& Bank

Sponsored

7%

UTI

65%

Pvt. Sector

38%

Institutions

& Bank

Sponsored8%

UTI

54%


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RECENT TRENDS IN MUTUAL FUND INDUSTRY

MUTUAL FUNDS IN INDIA (1964-2009)


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1999-2009 YEAR OF THE FUNDS

FUTURE SCENARIO


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CONCEPT OF A MUTUAL FUND

BENEFITS OF INVESTING IN MUTUAL FUNDS


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CONSTITUTION OF A MUTUAL FUND

STRUCTURE OF MUTUAL FUNDS IN INDIA

THE FUND SPONSOR

MUTUAL FUNDS AS TRUSTS


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TRUSTEES

THE ASSET MANAGEMENT COMPANY

CUSTODIANS AND DEPOSITORIES


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BANKERS

TRANSFER AGENTS

DISTRIBUTORS

TYPES OF MUTUAL FUNDS


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Income

56%

Equity

11%

Balanced

17%

Money

Market

10%

Gilt

4%

ELSS

2%

Assets Under Managment Under Different

Types

OF Schemes As On September 30, 2009


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THE REGULATORY FRAMEWORK OF MUTUAL FUNDS IN INDIA

SEBI THE CAPITAL MARKETS REGULATOR

SEBI (MUTUAL FUNDS) REGULATIONS, 1996

y

y

y

y


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y

y

y

y

y

y

y

y


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y

y

y

y

y

y

y

y

y

y

y

y

y

y


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y

y

y

y

y

y

y

y

y


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y

y

y

y

y

y

y

y

y


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APPROACHES TO PORTFOLIO MANAGEMENT

PASSIVE FUND MANAGEMENT: INDEX FUNDS

ACTIVE FUND MANAGEMENT

GROWTH VS. VALUE INVESTING: A CONTRAST IN STYLES


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VALUE INVESTING BARGAIN HUNTERS

GROWTH INVESTING CONCENTRATE ON THE PRODUCT NOT THE PRICE


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GROWTH STOCKS AND VALUE STOCKS

DIFFERENT STYLES FOR DIFFERENT SEASONS

DEBT PORTFOLIO MANAGEMENT

CLASSIFICATION OF DEBT SECURITIES


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SIZE AND BREAKUP OF INDIAN DEBT MARKET


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j

j


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j

j

j

j

j

MEASURES OF BOND (DEBT SECURITIES) YIELD

RISKS IN INVESTING IN BONDS


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DEBT INVESTMENT STRATEGIES

y

y


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y

y


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INVESTING IN MUTUAL FUNDS

ASSET ALLOCATION DETERMINING OF THE PORTFOLIO MIX


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WHAT IS ASSET ALLOCATION?

INVESTMENT GOALS

RISK TOLERANCE


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INVESTMENT HORIZON

PERSONAL CIRCUMSTANCES

ASSET ALLOCATION DETERMINING THE RIGHT MIX

DIFFERENT ASSET ALLOCATION MODELS

BENJAMIN GRAHAMS 50/50 BALANCE


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50/50 PORTFOLIO OF MUTUAL FUNDS

STRATEGIC ASSET ALLOCATION


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THE LIFE CYCLE STAGE

THE EARLY WORKING YEARS - 25-40 YEARS

THE LATER WORKING YEARS - 40- 50 YEARS

THE PRE AND POST RETIREMENT YEARS - 50 -70 YEARS


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THE WEALTH CYCLE GUIDE


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FIXED VS. FLEXIBLE ASSET ALLOCATION


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MODEL PORTFOLIOS


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Source: Bogle On Mutual Funds

Investment Goal

Accumulation Distribution

Older

Younger

Age

STOCKS/BONDS

70/30 50/50

60/4080/20

ASSETALLOCAT

ION


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SELECTING SPECIFIC FUND MANAGERS AND THEIR SCHEMES

SELECTING THE RIGHT MUTUAL FUND: THE BOGLE APPROACH

SELECTING THE EQUITY FUNDS


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SELECTING A DEBT/BOND/INCOME FUND


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SELECTING A MONEY MARKET FUND.


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SELECTING A BALANCED MUTUAL FUND:


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