[Type the company name] | INVESTMENT IN MUTUAL FUNDS AND SHARES –PROS AND CONS | FINANCIAL MANAGEMENT | | TO, PRATIMA TRIVEDI | 12/9/2013 |
REPORT BY-
PARITOSH SINGH FS35
PRAKRITI FS40
PANKAJ KUMAR SINGH FS34
ROMANSHU VARSHNEY FS64
RAJNEESH SHARMA FS44
TABLE OF CONTENTS
Table of Contents ACKNOWLEDGEMENT 4 A. MUTUAL FUNDS 5 I. INTRODUCTION 5 II. ROLE OF MUTUAL FUNDS IN THE FLNANCIAI, MARKET 5 III. MUTUAL FUNDS: STRUCTURE IN INDIA 5 IV. GROWTH IN MUTUAL FUND INDUSTRY 6 V. IMPACT OF THE GLOBAL FINANCIAL CRISIS 11 VI. GOVERNMENT POLICIES 11 VII. ADVANTAGES OF MUTUAL FUNDS 12 Diversification. 12 Expert Management. 12 Liquidity. 13 Convenience. 13 Reinvestment of Income.
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In this process, Indian mutual funds have emerged as strong financial intermediaries and are playing a very important role in bringing stability to the financial system and efficiency to resource allocation Mutual funds have opened new vistas to investors and imparted much-needed liquidity to the system. III. MUTUAL FUNDS: STRUCTURE IN INDIA
Mutual Funds in India follow a 3-tier structure. There is a Sponsor (the First tier), who thinks of starting a mutual fund. The Sponsor approaches the Securities &Exchange Board of India (SEBI), which are the market regulator and also the regulator for mutual funds.
Not everyone can start a mutual fund. SEBI checks whether the person is ofintegrity, whether he has enough experience in the financial sector, his net worth etc. Once SEBI is convinced, the sponsor creates a Public Trust (the Second tier) as per the Indian Trusts Act, 1882. Trusts have no legal identity in India and cannot enter into contracts, hence the Trustees are the people authorized to act on behalf of the Trust. Contracts are entered into in the name of the Trustees. Once the Trust is created, it is registered with SEBI after which this trust is known as the mutual fund. IV. GROWTH IN MUTUAL FUND INDUSTRY
The Indian Mutual fund industry has witnessed considerable growth since its inception in 1963. The assets under management (AUM) have surged to Rs 4,173 bn in Mar-09 from just Rs. 250 mn in
If we consider with other investment options equity mutual fund is provide maximum benefits to the investors. Asset Management Company that properly invest it’s client fund into the security market as per their objectives which has defined in their prospectus. The fund manager has proper team to research so to make proper planning for investment with strategy and to succeed the highest market return.
Money Market Mutual Funds are investments whose purpose is to provide investors with a safe place to invest. They are
“However, there are over 10,000 mutual funds in operation, and these funds vary greatly according to investment objective, size strategy, and style. Mutual funds are available for virtually every investment strategy (e.g. value, growth), every sector (e.g. biotech, internet), and every country and region of the world. So even the process of selecting a fund can be tedious” (Staff).
Mutual fund Industry was introduced in India 1963 with the formation of Unit Trust of India. During the last few years many extraordinary and rapid changes have been taking place in the Mutual fund industry. Indian economy is highly developing. The development is taken place due to the growth in the financial system.
Establishing and maintaining an internal mutual fund for Urban Growth Management Company, with smart investments will allow the company to become a stable flourishing corporation. Listed below is the recommended investments to establish a mutual fund for Urban Growth Management Company. An explanation and breakdown of your investments are written out below the breakdown of funds allocated. The fund allocations through various corporations and companies will shift and foster into new opportunities. Not all opportunities are created equal, and there will always be risk involved. Continuous management and evaluation of distributed funds should be considered on an annual basis.
3.1INTRODUCTION: A Mutual Fund is a kind of trust that pools money which shares common financial goals from a group of investors and invest the money. The Fund is mainly a corporation where sole business is to collect and invest money or fund. You combine the pool by buying shares in the fund. Then the money is invested by a team of professionals who research bond, stock and other assets and then place the money as good they can earn the returns. There are several kinds of mutual fund. Funds can also be open ended and close ended funds. Open ended schemes sell their shares to those who are willing to buy.
In business or even in life, the quality of management plays a direct role on the success of the venture. The quality of management offered for a mutual fund is no different. In the investment world, mutual funds are either actively managed or indexed. __Actively managed funds__ uses more human capital to actively manage a fund 's portfolio, they use expertise and research to determine what securities to buy or sell. __Indexed funds__ are the opposite of active,
A mutual fund is a group of stocks and/or bonds put together, to be invested in as one, and similarly to stocks, investors own shares, which signify a partial ownership on the fund.
Welcome to the latest series of Article “FinVest” which will guide you to take your day-to-day investment decisions. In the first Article of the series we will look into the Mutual Fund Investments, the various types of mutual funds available in the Indian Mutual Fund Industry, the risks and benefits of each of them, and the current trends prevalent in the industry, some recommendations on the various offerings by the financial instruments.
To begin, the stock market has been an arena notorious for its extreme wealth creation. In today's news, the small investor is inundated with information regarding particular countries, individual companies, and future macroeconomic predictions in regards to the stock market. With all this information, the small investor is left hopeless to sift through it all, in hopes of finding the particular asset that can secure retirement, pay for a child's education, or provide a stable life. To the small investor's detriment however, many of them do not have the time, expertise or inclination to study individual companies in hopes of determining which one merits his or her hard earned money. Even more important, the few dollars the investor does have to invest must be invested in a manner that does not lose him or her any money. In such instances, the investor must now work even harder to cover any loses incurred and still afford to live comfortably in retirement. As such, the investor forgoes this headache of stock picking and elects to give his money to a mutual fund manager. This action on the surface seems correct,
Walia et al. (2009) evaluated the investor’s perception towards risk-return trade-off for mutual fund services in comparison to other avenues like insurance, government securities and shares. The authors made use of a structured questionnaire to know the experience of existing investors. Selective systematic sampling was taken for consideration. For reliability of the questionnaire, 100 individual investors were selected from different regions of Punjab which included selective investors who were assumed to be having completeknowledge offinancial environment. Age constraint was considered. The authors identified critical gaps in the existing services and found the need of some innovations and added quality dimensions in the existing services. It was concluded that due to stock market volatility movements, most of the investors were holding stock with calculated risk in shape of mutual funds. Age constraint considered in this questionnaire was minimum 18 years. Another objective was to find critical gaps in mutual funds services towards transparency and disclosure practices. Chi-square test was applied on the data collected. So, the
The fund was launched on 10th June 2010 which is currently being managed by Harish Zaveri1 and the overseas investments are managed by Jay Kothari. Over the past three years the fund asset under management has increased from INR 361 crores in December 2012 to INR 1,177 crores as on December 2015. The fund is positioned as large cap fund with a focus on selected stocks. It is currently benchmarked against S&P BSE 200.2
The data also shows companies whose percentage is negative indicating loss in the stipulated time. An example of a company that experiences loss is Pictet Strategic Income P dm USD at -0.60%. The data also reveals that the company bounces back in six months making 0.38% in returns. The data is consistent with the data provided by Securities and Futures Commission as it provides a Net Asset Value by fund type provided by the fund companies. The Net Asset Value recorded is at 31 of December from 1997 to 2016 however, this paper will consider data from year 2000 to 2016. The data on returns relates to the size of the funds as each fund type contributes to the overall returns that a company earns. The different mutual funds represent the stock market appearance of the Hong Kong securities and how they vary in terms of performance for the different mutual fund companies sampled in this report.
Mutual fund is a fund that exhibitions as a wander vehicle, pools the trusts of different theorists to place assets into distinctive budgetary instruments like stocks, securities, debentures, et cetera engaging monetary experts to achieve their money related targets. SEBI (Mutual Funds) Regulation 1993, describes Mutual Fund as "Normal Fund intimates a trust secured as a trust by a sponsor to raise money by the trustee through the offer of units to the all inclusive community under one or more plans for placing assets into securities according to these regulations".
Mutual fund: An Introduction A mutual fund is a form of collective investment. It is a pool of money collected from various investors which is invested according to the stated investment objective. The fund manager is the person who invests the money in different types of securities according to the predetermined objectives. The portfolio of a mutual fund is decided taking into consideration this investment objective. Mutual fund investors are like shareholders and they own the fund. The income earned through these investments and the capital appreciation realized by the scheme is shared by its unit holders in proportion to the number of units owned by them. The value of the investments can go up or down, changing the value of the