A STUDY ON MUTUAL

FUNDS
BY HIMANSHU PACHAURI
MBA 2nd SEMESTER
INTRODUCTION
 A Mutual Fund is a trust that pools the savings of a
number of investors who share a common financial
goal. The flow chart below describes broadly the
working of a mutual fund:
FLOWCHART OF MUTUAL FUND

INVESTORS

Investors pool their money Returns transferred to

with mutual fund stocks investors
and bonds

MUTUAL FUND

Mutual fund invests in Returns (Profit/loss) on

different stocks and bonds stocks and bonds

MARKET SECURITIES
ORGANISATION OF A MUTUAL
FUND

There are many entities involved and the diagram

below illustrates the organisational set up of a mutual
fund:
 ADVANTAGES OF MUTUAL
FUNDS
The advantages of investing in a Mutual Fund are:
 Professional Management

 Diversification

 Low Costs

 Flexibility Choice of schemes

 Tax benefits
TYPES OF MUTUAL FUND
SCHEMES
 CLOSE – ENDED SCHEMES
 OPEN - ENDED SCHEMES
 OBJECTIVES OF THE STUDY
 To have a complete knowledge regarding mutual
funds.
 To collect information regarding different mutual funds
in the market.
 To infer which fund is better choice for investment and
why.
 To know how well a fund has performed during its
tenure.
 To have a greater insight regarding the mutual funds.
TYPES OF RISK INVOLVED
MARKET RISK

CREDIT RISK

LIQUIDITY RISK
MUTUAL FUND STRATEGIES
SIP

SWP

STP