amc &types of mutual funds
TRANSCRIPT
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Presentation
OnAMCand Types of Mutual Fund
Prepare By,Shrenik Shah (03)Aagam Shah (14)
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WHAT IS AMC???
An Asset Management Company (AMC) is aninvestment management firm that invests the pooled
funds of retail investors in securities in line with thestated investment objectives.
T he investment company provides more
diversification, liquidity, and professional managementconsulting service than is normally available toindividual investors.
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T he diversification of portfolio is done by investingin such securities which are inversely correlated toeach other. T hey collect money from investors byway of floating various mutual fund schemes.
Investment management services' includes elementsof financial statement analysis, asset selection (realestate), securities (stocks, bonds and other securities),
plan implementation and ongoing monitoring of
investments.
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Fund ManagerF und manager refers to provides investmentmanagement serv ic es and an individual whod ire c ts fund management decisions.
W hat FM do?
1. Asset allocation2. Long-term returns
3. Diversification4. Risk-adjusted performance measurement (hedging)5. Performance measurement
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KEY PROBL E MS OF RUNNINGSUCH BUSIN E SS E S
revenue is directly linked to market valuations, soa major fall in asset prices causes a precipitousdecline in revenues relative to costs;
above-average fund performance is difficult tosustain, and clients may not be patient during timesof poor performance.
successful fund managers are expensive and may be headhunted by competitors
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Abo ut IndustryT he industry is dominated by the institutionalinvestors.Among those, there are some Indian companies as
well as some foreign/joint venture companies.However, Indian players are outperforming theforeign counterparts in every area, viz. revenues,assets, and profitability.
According to the latest report, asset management business in India is going to increase at least 33%annually
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AU M (Assets under Management)
Total AUM with all AMC is68755953.71 `.
AMC Total AUM
` ( inla c s)
Rel ian c e Mutual Fund 10451123
HDFC Mutual Fund 9017874
ICICI Prudent ial Mutual Fund 6876863
UTI Mutual Fund 6417280
B irla Sun L ife Mutual Fund 6421751
SBI Mutual Fund 3855179
DSP Black
Rock
Mutual Fund 2415346
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By Structure
OpenEnded
CloseEnded
Interval
By InvestmentObjective
Growth
Income
Balance
MoneyMarket
OtherSchemes
TaxSaving
SpecialSchemes
Index
SectorSpecific
Types of MutualFunds
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T ypes of Mutual Fund
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ByStructure
OpenEnded
CloseEnded
Interval
Not have a fixed maturity / Locking Period
Liquidity
Any time Deposit or withdraw money
Fixed Maturity / Locking PeriodWe can t withdraw money before its locking period
over
Good Growth Opportunity
Features of open-ended and close-ended schemes
For some time it work as close ended and then
after it becomes open ended.
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ByInvestmentObjective
Growth
Income
Balance
The aim of growth funds is to provide capitalappreciation
Return is reinvestedInvest Mostly in EquityFor medium or Long term time horizon
T he aim of income fund is capital stability andregular income.
Return is distributed by dividendInvest in fixed income security like bonds,
corporate debenturescapital stability and regular income.
Mixture of Growth scheme and Income Scheme
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MoneyMarket
Provide easy liquidity, preservation of capital and
moderate income
Invest in safer short-term instruments such as
treasury bills, certificates of deposit, commercial
paper
SpecialSchemes
Index
SectorSpecific
B ase on B SE Sensex, NIF TY 50, S & P 500, etc
Invest in index scripts as per their weightage.
NAV rise as index rise
Invest only in the industries specified in the offer
document
E.g. FMCG, Pharmaceuticals, Power, Cement etc
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Other
Schemes
TaxSaving
Tax rebates to the investors
ELSS and Pension scheme are allowed asdeduction u/s 88 of Income Tax act 1961
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