investment options- i
TRANSCRIPT
-
8/14/2019 Investment Options- I
1/51
TRIO-FEST 2009TRIO-FEST 2009
-
8/14/2019 Investment Options- I
2/51
INVESTMENTINVESTMENT
AVENUES-IAVENUES-I
I.BBA ( 2009-2012 BATCH)I.BBA ( 2009-2012 BATCH)
M.M.E.S WOMENS COLLEGE OF ARTS &M.M.E.S WOMENS COLLEGE OF ARTS &SCIENCESCIENCE
MELVISHARAM- 632509MELVISHARAM- 632509
-
8/14/2019 Investment Options- I
3/51
I.BBA ( 2009-2012 BATCH)I.BBA ( 2009-2012 BATCH)## AAMINA SHARIFAAAMINA SHARIFA # A. ANITHA# A. ANITHA
# SAIDA FATHIMA# SAIDA FATHIMA # B. CHITRA# B. CHITRA# SULTHANA# SULTHANA # K.BHUVANESHWARI# K.BHUVANESHWARI
# RABIYA ANJUM# RABIYA ANJUM # SHAJITHA# SHAJITHA
# K. ELAKKIYA# K. ELAKKIYA # NAZIYA SAMREEN# NAZIYA SAMREEN
# ALMAS BANU# ALMAS BANU # J. SHARMILA DEVI# J. SHARMILA DEVI
# FOUZIYA ANJUM# FOUZIYA ANJUM # NADIYA# NADIYA
# LOGANAYAGI# LOGANAYAGI # C.SARANYA# C.SARANYA
# D. BHUVANESHWARI# D. BHUVANESHWARI # M.INDHUMATHY# M.INDHUMATHY
# R.POORANI# R.POORANI # B.SINDHUPRIYA# B.SINDHUPRIYA
# S.GAYATHRI# S.GAYATHRI # M.GEETHA# M.GEETHA# S.ISHWARYA# S.ISHWARYA # S.DIVYA# S.DIVYA
# R.NITHYA# R.NITHYA # R.AISHWARYA# R.AISHWARYA
# P.LAVANYA# P.LAVANYA # E. MALA# E. MALA
# R. NITHYA# R. NITHYA # THASMIYA FIRTOUSE# THASMIYA FIRTOUSE
-
8/14/2019 Investment Options- I
4/51
IntroductionIntroduction
-
8/14/2019 Investment Options- I
5/51
Investment What does it mean?Investment What does it mean?
InIn financefinance, investment, investment meansmeans the usethe use moneymoney ininthe hope of making more money by purchasingthe hope of making more money by purchasinga financial product.a financial product.
InIn businessbusiness, Investment refers to purchase by a, Investment refers to purchase by aproducerproducer of a physical good such as durableof a physical good such as durableequipmentequipment oror inventoryinventory, in the hope of, in the hope ofimproving future business.improving future business.
http://www.investorwords.com/1940/finance.htmlhttp://www.investorwords.com/1940/finance.htmlhttp://www.businessdictionary.com/definition/mean.htmlhttp://www.businessdictionary.com/definition/mean.htmlhttp://www.investorwords.com/3100/money.htmlhttp://www.investorwords.com/3100/money.htmlhttp://www.investorwords.com/623/business.htmlhttp://www.investorwords.com/623/business.htmlhttp://www.investorwords.com/3872/producer.htmlhttp://www.investorwords.com/3872/producer.htmlhttp://www.businessdictionary.com/definition/equipment.htmlhttp://www.businessdictionary.com/definition/equipment.htmlhttp://www.investorwords.com/2589/inventory.htmlhttp://www.investorwords.com/2589/inventory.htmlhttp://www.investorwords.com/2589/inventory.htmlhttp://www.businessdictionary.com/definition/equipment.htmlhttp://www.investorwords.com/3872/producer.htmlhttp://www.investorwords.com/623/business.htmlhttp://www.investorwords.com/3100/money.htmlhttp://www.businessdictionary.com/definition/mean.htmlhttp://www.investorwords.com/1940/finance.html -
8/14/2019 Investment Options- I
6/51
Saving Vs InvestmentSaving Vs Investment
Savings is accumulating your money;Savings is accumulating your money;
Investing is making that money workInvesting is making that money workto earn more money.to earn more money.
The rate of returns and risk forThe rate of returns and risk forsavings are often lower whensavings are often lower whencompared to investment. .compared to investment. .
-
8/14/2019 Investment Options- I
7/51
Why to investWhy to invest
Beat InflationBeat Inflation Improve standard of livingImprove standard of living Create wealth for the future.Create wealth for the future. Buy a car/ Purchase a houseBuy a car/ Purchase a house Send your children for higher educationSend your children for higher education Go for a holidayGo for a holiday Plan for a comfortable retirement in thePlan for a comfortable retirement in the
future.future. Avail Tax benefitsAvail Tax benefits
-
8/14/2019 Investment Options- I
8/51
When to investWhen to invest
Start early and retire richStart early and retire rich Invest regularlyInvest regularly
Invest in time but never try to timeInvest in time but never try to timethe market.the market. Be patient -the longer the investmentBe patient -the longer the investment
horizon, the lesser is the risk andhorizon, the lesser is the risk andgreater are the returns.greater are the returns.
-
8/14/2019 Investment Options- I
9/51
Factors influencing InvestmentsFactors influencing Investments
Your goals and needsYour goals and needsYour age at the time of investmentYour age at the time of investmentYour income at the time of investmentYour income at the time of investmentYour Time horizonYour Time horizon Liquidity how fast can you convert yourLiquidity how fast can you convert your
assets into cash?assets into cash?Tolerance for risk how much risk areTolerance for risk how much risk are
you willing to take?you willing to take?
-
8/14/2019 Investment Options- I
10/51
Investment AvenuesInvestment Avenues
Real EstateReal Estate GoldGold
Fixed DepositsFixed Deposits SharesShares Mutual FundsMutual Funds
InsuranceInsurance BondsBonds
-
8/14/2019 Investment Options- I
11/51
REAL ESTATE- LOCATION IS THEREAL ESTATE- LOCATION IS THE
KEYKEY
-
8/14/2019 Investment Options- I
12/51
Investment in Real Estate IncludesInvestment in Real Estate Includes
Investment on Prime PropertyInvestment on Prime Property
( Commercial Area)( Commercial Area) Investment in Non-Prime PropertyInvestment in Non-Prime Property
( Residential Area)( Residential Area)
-
8/14/2019 Investment Options- I
13/51
ADVANTAGES INADVANTAGES IN
REAL ESTATE INVESTMENTREAL ESTATE INVESTMENT
The cost of paying a mortgage is usually lower than rentalThe cost of paying a mortgage is usually lower than rentalpayments, and you can choose the amount of payments.payments, and you can choose the amount of payments.
Real estate investment is one business that tends to gain valueReal estate investment is one business that tends to gain valueover timeover time
A house itself is a heritage to your children who will inherit it andA house itself is a heritage to your children who will inherit it andwith the help of the house in order to make other investments orwith the help of the house in order to make other investments orhave money in troubled times.have money in troubled times.
Feeling of safety, personal development and confidence in theFeeling of safety, personal development and confidence in thefuture.future.
It creates a greater sense of belonging to where you live.It creates a greater sense of belonging to where you live.
Continuous Cash Flow from Rental IncomeContinuous Cash Flow from Rental Income
During inflation rental value of the area will increase.During inflation rental value of the area will increase.
In addition, you can do things like grow yourIn addition, you can do things like grow yourown garden andown garden and
decorate the space as you like.decorate the space as you like.
-
8/14/2019 Investment Options- I
14/51
DISADVANTAGES INDISADVANTAGES IN
REAL ESTATE INVESTMENTREAL ESTATE INVESTMENT
Payment of a mortgage over a longPayment of a mortgage over a longperiod of time, is not the same asperiod of time, is not the same as
buying on spot.buying on spot. Payment of property taxes and otherPayment of property taxes and other
taxes.taxes.
We incurred other expenses such asWe incurred other expenses such asinsurance and maintenance of theinsurance and maintenance of theproperty.property.
-
8/14/2019 Investment Options- I
15/51
Points considered before youPoints considered before you
before you seal the dealbefore you seal the deal Before entering into any sort ofBefore entering into any sort of
contractual agreement, make surecontractual agreement, make surethe seller has legal and clear title.the seller has legal and clear title.
Do not pay the seller more than theDo not pay the seller more than theappraisal.appraisal.
Ensure that the land is out of anyEnsure that the land is out of anyflood zone.flood zone.
Survey the land properly.Survey the land properly.
-
8/14/2019 Investment Options- I
16/51
GOLD AS AN INVESTMENT OPTIONGOLD AS AN INVESTMENT OPTION
-
8/14/2019 Investment Options- I
17/51
GOLD INVESTMENT OPTIONSGOLD INVESTMENT OPTIONS
Physical Gold BarsPhysical Gold Bars Physical Gold CoinsPhysical Gold Coins Gold savings accountsGold savings accounts Gold chitsGold chits Gold Fixed deposit schemesGold Fixed deposit schemes I-goldI-goldJewelsJewels Gold Mining sharesGold Mining shares
-
8/14/2019 Investment Options- I
18/51
REASONS FOR INVESTMENT IN GOLDREASONS FOR INVESTMENT IN GOLD
Gold is an integral part of social and religious customsGold is an integral part of social and religious customs Gold has aesthetic appealGold has aesthetic appeal Gold is a Global currencyGold is a Global currency Gold has long proven ability to retain value and appreciateGold has long proven ability to retain value and appreciate
in value.in value.
Gold is readily available in a standardized formGold is readily available in a standardized form Gold Investments Are Very Liquid And MarketableGold Investments Are Very Liquid And Marketable Gold Metal Investments CanGold Metal Investments Candiversify your portfolio todiversify your portfolio to
minimize risks and maximize returnsminimize risks and maximize returns Gold is secure and safe investment option , and will be inGold is secure and safe investment option , and will be in
your possessionyour possession Gold Investment Options are several. TheGold Investment Options are several. Theindividual can pickindividual can pick
the option which suits his risk levels, trading strategies, andthe option which suits his risk levels, trading strategies, andprecious metal preferencesprecious metal preferences
Last but not the least, Investments in Gold not just anLast but not the least, Investments in Gold not just aninvestment,investment,its a form ofits a form ofinsuranceinsurance tootoo..
http://www.getmoneyenergy.com/2009/03/how-to-protect-your-wealth-from-hyperinflation/http://www.getmoneyenergy.com/2009/03/how-to-protect-your-wealth-from-hyperinflation/http://www.getmoneyenergy.com/2009/03/how-to-protect-your-wealth-from-hyperinflation/http://www.getmoneyenergy.com/2009/03/how-to-protect-your-wealth-from-hyperinflation/http://www.getmoneyenergy.com/2009/03/how-to-protect-your-wealth-from-hyperinflation/http://www.getmoneyenergy.com/2009/03/how-to-protect-your-wealth-from-hyperinflation/ -
8/14/2019 Investment Options- I
19/51
WHY FIXED DEPOSITS ?WHY FIXED DEPOSITS ?
-
8/14/2019 Investment Options- I
20/51
Fixed depositsFixed deposits
Fixed deposits in banksFixed deposits in banks
Company Fixed depositsCompany Fixed deposits
-
8/14/2019 Investment Options- I
21/51
ADVANTAGES OF FIXEDADVANTAGES OF FIXED
DEPOSITS IN BANKSDEPOSITS IN BANKS
Very secure and safest investment methodVery secure and safest investment method
Earn fixed interest rates for their entire tenure, which is usuallyEarn fixed interest rates for their entire tenure, which is usuallycompounded quarterly.compounded quarterly.
Popular way of investing money for retirees. FD gives seniorPopular way of investing money for retirees. FD gives seniorcitizens the highest rate of interest. It depends upon the banks.citizens the highest rate of interest. It depends upon the banks.
Maximum of Rs.100,000 for 5 years are eligible for tax deductionsMaximum of Rs.100,000 for 5 years are eligible for tax deductionsunder section 80 C of income tax act,under section 80 C of income tax act,
The interest % is high when compare with other deposits like SBThe interest % is high when compare with other deposits like SB(Saving Bank A/C) & Current A/C.(Saving Bank A/C) & Current A/C.
You can keep FD with "Time base and Money base" schemes, forYou can keep FD with "Time base and Money base" schemes, forexample 2 years deposits or 5 years deposits / up toexample 2 years deposits or 5 years deposits / up toRs.50,00,000/- or Rs.10,00,00,000/-Rs.50,00,000/- or Rs.10,00,00,000/-
-
8/14/2019 Investment Options- I
22/51
Disadvantages of Fixed depositDisadvantages of Fixed deposit
InvestmentInvestment
The interest earned on fixedThe interest earned on fixed
deposits is fully taxable and is addeddeposits is fully taxable and is addedto the annual income of theto the annual income of theindividualindividual
Rising inflation can wipe out theRising inflation can wipe out theinterest benefits of FDsinterest benefits of FDs
-
8/14/2019 Investment Options- I
23/51
Precautions to be taken in FixedPrecautions to be taken in Fixed
Deposit InvestmentDeposit Investment Company fixed deposits are not considered asCompany fixed deposits are not considered as
safe as fixed deposits from leading banks andsafe as fixed deposits from leading banks andfinancial institutions regulated by the RBI. So, if afinancial institutions regulated by the RBI. So, if acompany runs into losses or goes bankrupt thecompany runs into losses or goes bankrupt the
money invested into its fixed deposit can be lost.money invested into its fixed deposit can be lost. The interest rates offered on fixed deposit varyThe interest rates offered on fixed deposit vary
greatly with banks and tenures. Whether thegreatly with banks and tenures. Whether theinterest rate is compounded quarterly or monthlyinterest rate is compounded quarterly or monthlywill determine how much a person earns from hiswill determine how much a person earns from his
fixed deposit.fixed deposit. Banks will impose a penalty if you break yourBanks will impose a penalty if you break your
fixed deposit before the maturity period. Makefixed deposit before the maturity period. Makesure you get the facts right about this thing.sure you get the facts right about this thing.
-
8/14/2019 Investment Options- I
24/51
Fixed Deposit Interest Rates inFixed Deposit Interest Rates in
Banks - Below ONE Year as onBanks - Below ONE Year as on
16/3/200916/3/2009
-
8/14/2019 Investment Options- I
25/51
Indian Banks - PublicSector
-
8/14/2019 Investment Options- I
26/51
-
8/14/2019 Investment Options- I
27/51
Fixed Deposit Interest Rates inFixed Deposit Interest Rates in
Banks - ONE year - FIVE yearsBanks - ONE year - FIVE years
-
8/14/2019 Investment Options- I
28/51
-
8/14/2019 Investment Options- I
29/51
-
8/14/2019 Investment Options- I
30/51
Company Fixed DepositsCompany Fixed Deposits Fixed deposits in companies that earn a fixed rate of return over aFixed deposits in companies that earn a fixed rate of return over a
period of time are called Company Fixed Deposits. Financialperiod of time are called Company Fixed Deposits. Financialinstitutions and Non Banking Finance Companies (NBFCs ) alsoinstitutions and Non Banking Finance Companies (NBFCs ) alsoaccept such deposits. Deposits thus mobilised are governed byaccept such deposits. Deposits thus mobilised are governed bythe Companies Act under Section 58A.the Companies Act under Section 58A.
These deposits are unsecured, i.e., if the company defaults, theThese deposits are unsecured, i.e., if the company defaults, theinvestor cannot sell the company to recover his capital, thusinvestor cannot sell the company to recover his capital, thusmaking them a risky investment option. Some of the optionsmaking them a risky investment option. Some of the options
available are:available are:
Monthly income deposits, where interest is paid every month.Monthly income deposits, where interest is paid every month. Quarterly income deposits, where interest is paid once everyQuarterly income deposits, where interest is paid once every
quarter.quarter. Cumulative deposits, where interest is accumulated and paid alongCumulative deposits, where interest is accumulated and paid along
with the principal at the time of maturity.with the principal at the time of maturity.
Recurring deposits, similar to the recurring deposits of banks.Recurring deposits, similar to the recurring deposits of banks.
NBFCs suffer from a credibility crisis. So be absolutely sure toNBFCs suffer from a credibility crisis. So be absolutely sure tocheck the credit rating. AAA rating is the safest. According to latestcheck the credit rating. AAA rating is the safest. According to latestRBI guidelines, NBFCs and companies cannot offer more than 14RBI guidelines, NBFCs and companies cannot offer more than 14per cent interest on public deposits.per cent interest on public deposits.
-
8/14/2019 Investment Options- I
31/51
Why Mutual Funds makeWhy Mutual Funds makesense?sense?
-
8/14/2019 Investment Options- I
32/51
WHAT IS MUTUAL FUND?WHAT IS MUTUAL FUND?
A Mutual Fund is a body corporate registered with theA Mutual Fund is a body corporate registered with theSecurities and Exchange Board of India (SEBI) that pools up theSecurities and Exchange Board of India (SEBI) that pools up themoney from individual / corporate investors and invests themoney from individual / corporate investors and invests thesame on behalf of the investors /unit holders, in equity shares,same on behalf of the investors /unit holders, in equity shares,Government securities, Bonds, Call money markets etc., andGovernment securities, Bonds, Call money markets etc., anddistributes the profits. In other words, a mutual fund allows andistributes the profits. In other words, a mutual fund allows an
investor to indirectly take a position in a basket of assets.investor to indirectly take a position in a basket of assets.
Unit Trust of India is the first Mutual Fund set up under aUnit Trust of India is the first Mutual Fund set up under aseparate act, UTI Act in 1963, and started its operations inseparate act, UTI Act in 1963, and started its operations in1964 with the issue of units under the scheme US-64.1964 with the issue of units under the scheme US-64.
Securities Exchange Board of India (SEBI) is the regulatorySecurities Exchange Board of India (SEBI) is the regulatorybody for all the mutual funds mentioned above. All the mutualbody for all the mutual funds mentioned above. All the mutualfunds must get registered with SEBI. The only exception is thefunds must get registered with SEBI. The only exception is theUTI, since it is a corporation formed under a separate Act ofUTI, since it is a corporation formed under a separate Act ofParliament.Parliament.
-
8/14/2019 Investment Options- I
33/51
Brief HistoryBrief History
1964-UTI1964-UTI 1987- Public Sector banks, Insurance1987- Public Sector banks, Insurance
CompaniesCompanies
-SBI, Canbank, PNB LIC, GIC-SBI, Canbank, PNB LIC, GIC 1993- Private Sector1993- Private Sector
Kothari Pioneer ( later merged withKothari Pioneer ( later merged withFranklin Templeton), J P Morgan, MorganFranklin Templeton), J P Morgan, MorganStanley, George Soros and CapitalStanley, George Soros and Capital
InternationalInternational
-
8/14/2019 Investment Options- I
34/51
MUTUAL FUND CYCLEMUTUAL FUND CYCLE
-
8/14/2019 Investment Options- I
35/51
Advantages of Mutual Fund
Professional Management Diversification of portfolio Flexibility in selection and redemption
Low costs Transparency Tax benefits Liquidity Well regulated
Choice of schemes Convenient to buy through mail, phone or internet
-
8/14/2019 Investment Options- I
36/51
Types of Mutual Fund SchemesTypes of Mutual Fund Schemes
By StructureBy Structure Open-Ended anytime enter/exitOpen-Ended anytime enter/exit Close-Ended Schemes listed on exchange, redemption afterClose-Ended Schemes listed on exchange, redemption after
period of scheme is over.period of scheme is over. By Investment ObjectiveBy Investment Objective
Equity (Growth) only in Stocks Long Term (3 years or more)Equity (Growth) only in Stocks Long Term (3 years or more)
Debt (Income) only in Fixed Income Securities (3-10 months)Debt (Income) only in Fixed Income Securities (3-10 months) Liquid/Money Market (including gilt) Short-term Money MarketLiquid/Money Market (including gilt) Short-term Money Market
(Govt.)(Govt.) Balanced/Hybrid Stocks + Fixed Income Securities (1-3 years)Balanced/Hybrid Stocks + Fixed Income Securities (1-3 years)
Other SchemesOther Schemes
Tax Saving SchemesTax Saving Schemes Special SchemesSpecial Schemes ULIPULIP
-
8/14/2019 Investment Options- I
37/51
How to select a Fund?
Investing Checklist :Investing Checklist :
Draw up your asset allocationDraw up your asset allocation Financial goals & Time frame (Are you investing forFinancial goals & Time frame (Are you investing for
retirement? A childs education? Or for current income? )retirement? A childs education? Or for current income? ) Risk Taking CapacityRisk Taking Capacity
Identify funds that fall into your Buy ListIdentify funds that fall into your Buy List Obtain and read the offer documentsObtain and read the offer documents
Match your objectivesMatch your objectives In terms of equity share and bond weightings, downsideIn terms of equity share and bond weightings, downside
risk protection, tax benefits offered, dividend payoutrisk protection, tax benefits offered, dividend payout
policy, sector focuspolicy, sector focus
-
8/14/2019 Investment Options- I
38/51
Investing Checklist-contd.Investing Checklist-contd.
Check out past performanceCheck out past performance Performance of various funds with similar objectives for atPerformance of various funds with similar objectives for at
least 3-5 years (managed well and provides consistentleast 3-5 years (managed well and provides consistentreturns)returns)
Think hard about investing in sector fundsThink hard about investing in sector funds For relatively aggressive investorsFor relatively aggressive investors Close touch with developments in sector, review portfolioClose touch with developments in sector, review portfolio
regularlyregularly
Look for `load' costsLook for `load' costs Management fees, annual expenses of the fund and salesManagement fees, annual expenses of the fund and sales
loadsloads Does the fund change fund managers often?Does the fund change fund managers often? Look for size and credentialsLook for size and credentials
Asset size less than Rs. 25 CroresAsset size less than Rs. 25 Crores
-
8/14/2019 Investment Options- I
39/51
Investing Checklist -ContdInvesting Checklist -Contd..
Diversify, but not too muchDiversify, but not too much Invest regularly, choose the S-I-PInvest regularly, choose the S-I-P
MF- an integral part of your savings andMF- an integral part of your savings andwealth-building plan.wealth-building plan.
Portfolio DecisionPortfolio Decision The right asset allocationThe right asset allocation
Age = % in debt instrumentsAge = % in debt instruments
Reality= different financial position, differentReality= different financial position, differentallocationallocation Younger= RiskierYounger= Riskier
-
8/14/2019 Investment Options- I
40/51
Investing Checklist ContdInvesting Checklist Contd..
Selecting the right fund/sSelecting the right fund/s Based on schemes investmentBased on schemes investment
philosophyphilosophy Long-term, appetite for risk, beatLong-term, appetite for risk, beat
inflation equity funds bestinflation equity funds best
TRAPS TO AVOIDTRAPS TO AVOID IPO BlurIPO Blur
Begin with existing schemes (provenBegin with existing schemes (proventrack record) and then new schemestrack record) and then new schemes
Avoid Market TimingAvoid Market Timing
-
8/14/2019 Investment Options- I
41/51
MF ComparisonMF Comparison
Absolute returnsAbsolute returns % difference of NAV% difference of NAV Diversified Equity with Sector Funds NODiversified Equity with Sector Funds NO
Benchmark returnsBenchmark returns SEBI directsSEBI directs Fund's returns compared to its benchmarkFund's returns compared to its benchmark
Time periodTime period Equal to time for which you plan to investEqual to time for which you plan to invest
Equity- compare for 5 years, Debt- for 6 monthsEquity- compare for 5 years, Debt- for 6 months Market conditionsMarket conditions
Proved its mettle in bear marketProved its mettle in bear market
-
8/14/2019 Investment Options- I
42/51
Buying Mutual FundsBuying Mutual Funds
Contacting the Asset Management Company directlyContacting the Asset Management Company directly Web SiteWeb Site Request for agentRequest for agent
Agents/BrokersAgents/Brokers Locate one on AMFI siteLocate one on AMFI site
Financial plannersFinancial planners Bajaj Capital etc.Bajaj Capital etc.
Insurance agentsInsurance agents BanksBanks
Net-BankingNet-Banking Phone-BankingPhone-Banking
ATMsATMs Online Trading AccountOnline Trading Account
ICICI DirectICICI Direct Motilal Oswal, Indiabulls- Send agentsMotilal Oswal, Indiabulls- Send agents
-
8/14/2019 Investment Options- I
43/51
Keeping TrackKeeping Track
Filling up an application form andFilling up an application form andwriting out a cheque= end of thewriting out a cheque= end of thestory NO!story NO!
Periodically evaluate performance ofPeriodically evaluate performance ofyour fundsyour funds Fact sheets and NewslettersFact sheets and Newsletters
WebsitesWebsites NewspapersNewspapers
Professional advisorProfessional advisor
-
8/14/2019 Investment Options- I
44/51
Warning SignalsWarning Signals
Fund's management changesFund's management changes
Performance slips compared to similar funds.Performance slips compared to similar funds.
Fund's expense ratios climbFund's expense ratios climb
Beta, a technical measure of risk, also climbs.Beta, a technical measure of risk, also climbs. Independent rating services reduce their ratings ofIndependent rating services reduce their ratings of
the fund.the fund.
It merges into another fund.It merges into another fund.
Change in management style or a change in theChange in management style or a change in theobjective of the fund.objective of the fund.
-
8/14/2019 Investment Options- I
45/51
SEBI GUIDELINESSEBI GUIDELINES
- Very detailed guidelines for- Very detailed guidelines fordisclosures in offer document, offerdisclosures in offer document, offerperiod, investment guidelines etc.period, investment guidelines etc. NAV to be declared everyday for open-NAV to be declared everyday for open-
ended, every week for closed endedended, every week for closed ended Disclose on website, AMFI, newspapersDisclose on website, AMFI, newspapers
Half-yearly results, annual reportsHalf-yearly results, annual reports Select Benchmark depending on schemeSelect Benchmark depending on scheme
and compareand compare
-
8/14/2019 Investment Options- I
46/51
Net Asset ValueNet Asset Value
Net Asset Value is the asset less liabilities. In case ofNet Asset Value is the asset less liabilities. In case ofcalculation of Mutual Fund scheme, Net asset value per unitcalculation of Mutual Fund scheme, Net asset value per unitis calculated.Net Asset Value per unit in Mutual Fundis calculated.Net Asset Value per unit in Mutual FundScheme is per share market value of Mutual fund scheme.Scheme is per share market value of Mutual fund scheme.
Net Asset Value = Total Fund Value / Number of unitsNet Asset Value = Total Fund Value / Number of units
outstandingoutstandingTotal Fund Value = Market value of fund investment+ otherTotal Fund Value = Market value of fund investment+ othercurrent assets+ Deposits - Current liabilities exceptcurrent assets+ Deposits - Current liabilities exceptcapital,Reserves and P& L account.capital,Reserves and P& L account.
This Net Asset Value (NAV) helps to know the performanceThis Net Asset Value (NAV) helps to know the performance
of Mutual Fund.The value of NAV changes on daily basisof Mutual Fund.The value of NAV changes on daily basisand are updated daily. The updated value can be seen fromand are updated daily. The updated value can be seen fromCompany website, AMFI website, Investor service centersCompany website, AMFI website, Investor service centersand daily business news papers. The NAV can also beand daily business news papers. The NAV can also besubscribed and obtained through e-mail and SMS.subscribed and obtained through e-mail and SMS.
f f
-
8/14/2019 Investment Options- I
47/51
List of Mutual fund companies inList of Mutual fund companies in
India as on 2008.India as on 2008.Sl.No Company URL1. AIG Investments http://www.aiggig.co.in
2 Association of MF in India http://www.amfiindia.com
3 ABN Amro http://www.abnamro.co.in/investmentservices/investment_products/mutual_funds.
html4 Benchmark Funds http://www.benchmarkfunds.com
5 Birla Sunlife http://www.birlasunlife.com
6 Bank of Barodahttp://www.bobmf.com
7 Computer Age Mgmt Services http://www.camsonline.com
8 Canara Robeco http://www.canbankmutual.com
9 DBS Cholamandalam http://www.dbscholamutual.com
Li t f M t l f d i
http://www.aiggig.co.in/http://www.amfiindia.com/http://www.amfiindia.com/http://www.benchmarkfunds.com/http://www.benchmarkfunds.com/http://www.birlasunlife.com/http://www.bobmf.com/http://www.camsonline.com/http://www.camsonline.com/http://www.canbankmutual.com/http://www.canbankmutual.com/http://www.dbscholamutual.com/http://www.dbscholamutual.com/http://www.canbankmutual.com/http://www.canbankmutual.com/http://www.camsonline.com/http://www.camsonline.com/http://www.bobmf.com/http://www.birlasunlife.com/http://www.benchmarkfunds.com/http://www.benchmarkfunds.com/http://www.amfiindia.com/http://www.amfiindia.com/http://www.aiggig.co.in/ -
8/14/2019 Investment Options- I
48/51
List of Mutual fund companies-List of Mutual fund companies-
contd.contd.Sl.No.Company URL
10 Deutsche Bank http://www.deutschemutual.com
11 DSP Merrill Lynch http://www.dspmlmutualfund.com
12 Escorts http://www.escotsmutual.com
13 Fidelity http://www.fidelity.co.in
14 Franklin Templeton http://www.franktempletonindia.com
15 HDFC http://www.hdfcfund.com
16 HSBC http://www.hsbcinvestments.co.in17 ING Vysa http://www.ingvysamf.com
18 J M Mutual http://www.jmmutual.com
19 JPMorgan http://www.jpmorganmf.com
http://www.deutschemutual.com/http://www.deutschemutual.com/http://www.dspmlmutualfund.com/http://www.dspmlmutualfund.com/http://www.escotsmutual.com/http://www.escotsmutual.com/http://www.fidelity.co.in/http://www.fidelity.co.in/http://www.franktempletonindia.com/http://www.franktempletonindia.com/http://www.hdfcfund.com/http://www.hsbcinvestments.co.in/http://www.hsbcinvestments.co.in/http://www.ingvysamf.com/http://www.ingvysamf.com/http://www.jmmutual.com/http://www.jmmutual.com/http://www.jpmorganmf.com/http://www.jpmorganmf.com/http://www.jpmorganmf.com/http://www.jpmorganmf.com/http://www.jmmutual.com/http://www.jmmutual.com/http://www.ingvysamf.com/http://www.ingvysamf.com/http://www.hsbcinvestments.co.in/http://www.hsbcinvestments.co.in/http://www.hdfcfund.com/http://www.franktempletonindia.com/http://www.franktempletonindia.com/http://www.fidelity.co.in/http://www.fidelity.co.in/http://www.escotsmutual.com/http://www.escotsmutual.com/http://www.dspmlmutualfund.com/http://www.dspmlmutualfund.com/http://www.deutschemutual.com/http://www.deutschemutual.com/ -
8/14/2019 Investment Options- I
49/51
List of Mutual fund companies- contd.List of Mutual fund companies- contd.
Sl.No. Company URL
20 Kotak http://www.kotakmutual.com
21 LIC Mutual Fundshttp://www.licmutual.com
22 Religare Mutual Funds http://www.religaremf.com
23 Morgan Stanley http://indiamf.morganstanley.com/
24 Principal http://www.principalindia.com
25 Prudential ICICI http://www.icicipruamc.com/
26 Quantum http://www.quantumc.com
27 Reliance http://www.reliancemutual.com
28 Sahara http://www.saharamutual.com
29 State Bank of India http://www.sebi.gov.in
30 Standard Chartered http://www.standardcharterdmf.com
http://www.kotakmutual.com/http://www.licmutual.com/http://www.religaremf.com/http://www.religaremf.com/http://indiamf.morganstanley.com/http://indiamf.morganstanley.com/http://www.principalindia.com/http://www.principalindia.com/http://www.quantumc.com/http://www.quantumc.com/http://www.reliancemutual.com/http://www.reliancemutual.com/http://www.saharamutual.com/http://www.saharamutual.com/http://www.sebi.gov.in/http://www.sebi.gov.in/http://www.standardcharterdmf.com/http://www.standardcharterdmf.com/http://www.standardcharterdmf.com/http://www.standardcharterdmf.com/http://www.sebi.gov.in/http://www.sebi.gov.in/http://www.saharamutual.com/http://www.saharamutual.com/http://www.reliancemutual.com/http://www.reliancemutual.com/http://www.quantumc.com/http://www.quantumc.com/http://www.principalindia.com/http://www.principalindia.com/http://indiamf.morganstanley.com/http://indiamf.morganstanley.com/http://indiamf.morganstanley.com/http://www.religaremf.com/http://www.religaremf.com/http://www.licmutual.com/http://www.kotakmutual.com/ -
8/14/2019 Investment Options- I
50/51
List of Mutual fund companies- contdList of Mutual fund companies- contd
Sl.No. Company URL
31 Sundaram BNP Paribas http://www.sundarambnpparibas.in
32 TATA http://www.tatamutualfund.com
33 Taurus http://www.taurusmutualfund.com
34 UTIhttp://www.utimf.com
35 ICI http://www.ici.org
36 PIMCO http://www.pimco.com
37 Vanguard http://www.vanguard.com
http://www.sundarambnpparibas.in/http://www.sundarambnpparibas.in/http://www.tatamutualfund.com/http://www.tatamutualfund.com/http://www.taurusmutualfund.com/http://www.taurusmutualfund.com/http://www.utimf.com/http://www.ici.org/http://www.ici.org/http://www.pimco.com/http://www.vanguard.com/http://www.vanguard.com/http://www.vanguard.com/http://www.vanguard.com/http://www.pimco.com/http://www.pimco.com/http://www.ici.org/http://www.ici.org/http://www.utimf.com/http://www.taurusmutualfund.com/http://www.taurusmutualfund.com/http://www.tatamutualfund.com/http://www.tatamutualfund.com/http://www.sundarambnpparibas.in/http://www.sundarambnpparibas.in/ -
8/14/2019 Investment Options- I
51/51
THANK YOUTHANK YOU