Understand the mutual funds and its features.

1. MUTUAL FUND’S
• WHAT IS MUTUAL FUND’S ?
• WHY MUTUAL FUND’S?
• TYPE OF MUTUAL FUND’S?
• HOW TO INVEST IN MUTUAL FUND’S?

2. 1)WHAT IS MUTUAL FUND’S ?
• Collective investment that allows many investors to invest.
• In a fund with a common objective
• Pools individual investments and give it to a professional
manager who in turn would invest these monies in line
with the common objective.

3. FLOW CHART OF A MUTUAL FUND

4. FEATURES OF A MUTUAL FUND’S
 Investors own the mutual fund.
 Professional managers (AMC) manage the fund for a fee.
 Fees charged is specified by SEBI and is expressed as a percentage of assets
managed
 The funds are invested in a portfolio of marketable securities in
accordance with the investment objective.
 Value of the portfolio and investors’ holdings, alters with change in the
market value of investments.
 Every fund like a share price has a “NAV”
 Every investor will have a unique folio number

5. Mutual Funds: A Packaged Product
Professional
Management
Convenience
Tax Benefits
Liquidity
Diversification

6. Diversification:
 Portfolio of investments spreads out Risk
 Attempts Minimizes value erosion
 One should check for the sectorial allocation in a mutual
fund.
 Also look out for individual allocation on stocks

7. 2) WHY MUTUAL FUND’S?
• Higher returns
• Professionally managed
• Disciplined investing
• Less/ No lock-in
• The fund with your name on it
• Diversification
• Convenience

8. CONTINUE…

9. 3) TYPE OF MUTUAL FUND’S?
 Open-ended funds
 Closed-ended funds- Fixed Maturity Plans
 Equity fund
 Debt fund
 Balanced fund
 Fund of funds

10. Open-ended vs Closed-ended Funds
OPEN-ENDED
 No fixed maturity
 Variable Corpus
 Not Listed
 Buy from and sell to the Fund
 Entry/Exit at NAV related
prices
CLOSED-ENDED
 Fixed Maturity
 Fixed Corpus
 Generally Listed
 Buy and sell in the Stock
Exchanges
 Entry/Exit at the market prices
VS

11. • Pre-dominantly invest in equity markets
• Diversified portfolio of equity shares
• Diversified equity funds
• Large cap, Mid cap and Multi cap mutual funds
• Understand your risk profile before investing in funds
• ELSS- Equity Linked Savings Schemes
• Index funds
• Sector specific funds (sectoral funds)
EQUITY MUTUAL FUNDS

12. DEBT MUTUAL FUNDS
 Pre-dominantly invest in the debt markets.
 Diversified debt fund
 Select set based on some criterion
 Income funds
 Gilt funds
 Liquid or money-market funds
 Serial plans or fixed term plans
 Liquid funds give better returns than savings a/c in bank
 FMP’s give better returns than fixed deposits

13. BALANCED FUNDS
 Investment in more than one asset class:
 Debt and equity in predefined proportions
 Pre-dominantly debt with some exposure to equity
 Pre-dominantly equity with some exposure to debt
 Education plans and children’s plans

14. FUND OF FUNDS
 Investment of its corpus in other mutual fund
schemes
 Schemes of same mutual fund house
 Schemes of other mutual fund house
 Is considered like a Debt scheme for tax purposes
 The effective expenses become higher as the
investors have to bear the expenses of the invested
schemes as well

15. HOW TO INVEST IN MUTUAL FUND’S?

16. 10 Steps that you need to follow to start SIP in Mutual Funds are
1.Set Your Finance Goals : Short term/Long term.
2.Measure Your Risk Appetite : Low, moderate/high risk.
3.Plan Your Investment Horizon.
4.Invest Online/Offline : For details refer http://www.righthorizons.com/
5.Invest Directly/Through Financial Advisors.
6.KYC Compliance.
7.Select Fund Type : Debt funds, Equity funds or Hybrid funds.
8.Decide Date and Amount of SIP.
9.Decide Mode of payment.
10.Submit Application form.
Enjoy your SIP journey !

17. THANK YOU
CONTACT US
BANGALORE – HEAD OFFICE
#6, Arakere Village, Begur Hobli,
Bangalore – South Taluk, B.G. Road, Bangalore – 560 076.
contactus@righthorizons.com
+91 080-65687503 to 65687518
+91 98453 99780
http://www.righthorizons.com/