What are Mutual Funds?
Concept For your best friend Shiv’s birthday, you want to buy the following things for him Rs.400 Rs.30 Rs.100 Rs.500 You need approximately Rs.1000 to buy all the things but you have only Rs.200 You are not sure what gift to buy You do not want to compromise on the quality of the gift nor do you want to drop out any of the things WHAT WOULD YOU DO?
Concept You are not the only one who is facing this dilemma there are 4 common friends of Shiv and you who are facing the same situation One of the 4 friends suggest that if each one contributes his share of Rs.200, we will have Rs.1000 with which we can together buy all the things! You all collectively chose the bouquet, card, gift and cake Shiv is very happy to receive the gift. The same concept works in a mutual fund!
Concept Investing directly You need more money if you want to buy multiple securities You should have the expertise to chose the right security Your portfolio might be limited to shares of 4 or 5 companies You need to give a lot of time to monitor your investments and keep a track of the market Investing through a fund You get an exposure to an entire portfolio by pooling your money into the fund even with limited resources A fund manager who has en expert manages the portfolio Diversification across various sectors – mitigation of risk The fund manager takes care of churning of the portfolio
How a fund works? Investors Pool their money with. Passed back to. Returns Fund Manager Generate. Invest in. Securities
Concept of Unit? What is a ‘UNIT’? When the investors invest money in the mutual fund, they are issued “units” No. of units allotted Amount invested / NAV Units are like the shares of the fund As the value of investment grows, the price of every unit also grows. This is indicated by NAV (Net Asset Value) If you invest Rs.10,000 and the NAV is Rs.10; you get 1000 units
Concept of NAV NAV Net Asset Value is the market value of the assets of the scheme minus its liabilities. The per unit NAV is the net asset value of the scheme divided by the number of units outstanding on the Valuation Date NAV (Total Assets – Total Liabilities) / Total no. of units In a simple language NAV is nothing but the price of 1 unit at the end of that day. NAV of a fund is declared daily (on all working days)
Let us do some calculation A fund has a Total Asset of 10 crore as on 1st June 2007. The liabilities are Rs.1Lac on that day; Total number of units are 10 Lac. Calculate the NAV. Ans: NAV (10 crore – 1 Lac) / 10 Lac 99.9 On 1st Nov 2007 the Total Assets grow to 11 crore. Let us assume that the liabilities are Rs.1 lac. Calculate the NAV. Ans: NAV (11 crore – 1 Lac) / 10 Lac 109.9 If an investor had invested Rs.20000 on 1st june, what were the no. of units allotted to him? Ans: No. of units 20000 / 99.9 200.2002 If he sells these units on 1st Nov, what would be their value? Ans: Value of units 200.2002 * 109.9 22,002 Profit of Rs.2,002
Classification of Mutual Funds Based on Investment Philosophy Equity Based on Investor Participation Open Ended Based on Investment Plan Growth Income Balanced Closed Ended Dividend Reinvestment Debt Liquid Systematic Investment Plan Systematic Withdrawal Plan
MF – Risk Return Matrix EQUITY FUND RISK BALANCED FUND DEBT FUND LIQUID FUND RETURN
Advantages of a Mutual Fund Portfolio diversification Professional management Reduction / diversification of risk Convenient Administration Return potential Reduction of transaction costs Liquidity Transparency Convenience and flexibility Choice of schemes Tax benefits
Disadvantages of a Mutual Fund No control over costs No tailor-made portfolios, but family of schemes Managing a portfolio of funds Daily NAV pressure Corporate Money rather than retail
Tax Saving Mutual Funds Equity Linked Saving Schemes (ELSS) are Tax Saving Mutual Funds Features ELSS are equity funds with tax benefits offered u/s 80C Investments upto Rs.1,50,000 qualify for exemption Lock in period is 3 years Returns in ELSS depend on the market and fund performance hence returns are not assured and fluctuate widely, in line with the stock markets These funds are available round the year and can be taken as lump sum investments or through SIPs
Tax Saving Mutual Funds Equity Linked Saving Schemes (ELSS) are Tax Saving Mutual Funds Features ELSS are equity funds with tax benefits offered u/s 80C Investments upto Rs.1,50,000 qualify for exemption Lock in period is 3 years Returns in ELSS depend on the market and fund performance hence
L’ARÉ est également le point d’entrée en as de demande simultanée onsommation et prodution. Les coordonnées des ARÉ sont présentées dans le tableau ci-dessous : DR Clients Téléphone Adresse mail Île de France Est particuliers 09 69 32 18 33 email@example.com professionnels 09 69 32 18 34 Île de France Ouest
Mutual funds became popular in the United States in the 1920s and continue to be popular since the 1930s, especially open-end mutual funds. Mutual funds experienced a period of tremendous growth after World War II, especially in the 1980s and 1990s. LIC established its mutual fund in June 1989 while GIC had set up its mutual fund in December 1990.
Alfred Lambremont Webre III 3 mutual friends Adam Wiederholtz 5 mutual friends Michael's Wave 1 mutual friend Julie Castonguay 1 mutual friend Joseph Marie Buzzé 2 mutual friends Bob Challenger 1 mutual friend Joseph Irving 3 mutual friends Lorenzo Segarra 3 mutual friends Danny Wright 8 mut
HSBC Mutual Funds and HSBC Pooled Funds Annual Information Form November 12, 2021 HSBC Mutual Funds Cash and Money Market Funds1 HSBC Canadian Money Market Fund HSBC U.S. Dollar Money Market Fund Income Funds HSBC Mortgage Fund1 HSBC Canadian Short/Mid Bond Fund1 HSBC Canadian Bond Fund1 HSBC Global Corporate Bond Fund1
of the mutual fund universe, have risen from 0.5% in 2005 to 2.4% in late 2013. Comparing NTMFs and Hedge Funds Non-Traditional Mutual Funds generally are mutual funds that pursue alternative strategies, subject to the limitations of the more highly regulated way
companies by 4,906 mutual funds from 458 fund families. The full data matrix of mutual fund votes, composed of funds as rows and proposals as columns, is massive, with 892,651,606 cells. But because most mutual funds own only several hundred portfolio companies, and hence vote on
This paper utilizes a new dataset of foreign and domestic mutual funds in Mexico to assess their behavior and obtains three new findings. First, foreign mutual funds are more sensitive to global financial conditions and engage more in herding and positive feedback trading than domestic mutual funds, notably during episodes of market stress.
The Orange County Archives will also be open from 10 am to 3 pm. The Archives are located in the basement of the Old County Courthouse in Santa Ana. For more information, please visit us at: OCRecorder.com Clerk-Recorder Hugh Nguyen and our North County team during the department's last Saturday Opening in Anaheim. During the month of April: Congratulations to Hapa Cupcakes on their ribbon .