Mutual Fund

Rishu Anand
+91-9015645853
 Mutual Funds are financial intermediaries.
 They are companies set up to receive your
money, and then having received it, make
investments with the money.
 It is an ideal tool for people who want to invest
but don't want to be bothered with deciphering
the numbers and deciding whether the stock is a
good buy or not.
 A mutual fund manager proceeds to buy a
number of stocks from various markets and
industries. Depending on the amount you invest,
you own part of the overall fund. 
Understanding NAV
Net Asset Value (NAV) is the actual value of one
unit of a given scheme on any given business
day.
The NAV reflects the liquidation value of the fund's
investments on that particular day after
accounting for all expenses.
It is calculated by deducting all liabilities (except
unit capital) of the fund from the realisable value
of all assets and dividing it by number of units
outstanding
 Mutual funds gives an option to invest in
the market through a pool of money, this
has a fixed objective.
Systematic Plans
 Systematic Investment Plan
 Systematic Withdrawal Plan
 Systematic Transfer Plan
Evaluation of Mutual Funds

Besides Net Asset Value the following

parameters should be considered while
comparing the funds:
 AVERAGE RETURNS
 VOLATILITY
 CORPUS SIZE
 PERFORMANCE VIS A VIS
BENCHMARK OTHER SCHEMES
Credit Rating
 Credit Rating is an exercise conducted by a rating organisation to
evaluate the credit worthiness of the issuer with respect to the
instrument being issued or a general ability to pay back debt over the
specified period of time.
 Typically the highest credit rating is that of AAA and the lowest being
D (for default).
 Within the same alphabet class, the rating agency might have different
grades like A, AA and AAA and within the same grade AA+, AA-
where the "+" denotes better than AA and "-" indicates the opposite.

In India, currently we have four rating agencies - 

 CRISIL
 ICRA
 CARE
 Fitch
Advantages
 Small investments
 Professional Fund Management
 Spreading Risk
 Transparency and interactivity:
 Mutual Funds also provide complete portfolio disclosure of
the investments made by various schemes
 the proportion invested in each asset type.
 Mutual Funds clearly layout their investment strategy to
the investor.
 Liquidity
 Choice
 Regulations
Thank You