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MUTUAL FUNDS sheesh

Mutual funds are collective investment vehicles that pool money from multiple investors to invest in various securities, with profits distributed based on the Net Asset Value (NAV). They offer advantages such as professional management, diversification, and accessibility for retail investors, making them suitable for those lacking investment expertise or time. HDFC Mutual Fund, one of India's largest fund houses, provides a range of investment schemes and emphasizes the benefits of systematic investment plans (SIPs) for wealth creation through compounding.

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12 views

MUTUAL FUNDS sheesh

Mutual funds are collective investment vehicles that pool money from multiple investors to invest in various securities, with profits distributed based on the Net Asset Value (NAV). They offer advantages such as professional management, diversification, and accessibility for retail investors, making them suitable for those lacking investment expertise or time. HDFC Mutual Fund, one of India's largest fund houses, provides a range of investment schemes and emphasizes the benefits of systematic investment plans (SIPs) for wealth creation through compounding.

Uploaded by

musferah
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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MUTUAL FUNDS

COMMERCE

INTRODUCTION TO MUTUAL FUNDS


 WHAT ARE MUTUAL FUNDS?
A mutual fund is a collective investment vehicle that collects & pools money
from a number of investors and invests the same in equities, bonds, government securities,
money market instruments.
The income / gains generated from this collective investment scheme are distributed
proportionately amongst the investors, after deducting applicable expenses and levies, by
calculating a scheme’s “Net Asset Value” or NAV. In return, mutual fund charges a small fee.
Mutual Funds in India are established in the form of a Trust under Indian Trust Act, 1882, in
accordance with SEBI (Mutual Funds) Regulations, 1996. The fees and expenses charged by the
mutual funds to manage a scheme are regulated and are subject to the limits specified by SEBI.
AGENDA

1 2 3 4 5
WHAT are mutual HOW do mutual WHY mutual HDFC Mutual funds CONCLUSION
funds? Funds work? Funds? And banks
HOW A MUTUAL FUND WORKS?
When you invest in a mutual fund, you are pooling your money with many other investors. Mutual fund issues “Units” against the amount invested at the prevailing NAV. Returns from a mutual fund may include income
distributions to investors out of dividends, interest, capital gains or other income earned by the mutual fund.
You can also have capital gains (or losses) if you sell the mutual fund units for more (or less) than the amount you invested.

Mutual funds are ideal for investors who –


* lack the knowledge or skill / experience of investing in stock markets directly.
* want to grow their wealth, but do not have the inclination or time to research the stock market.
* wish to invest only small amounts.
WHY INVEST IN MUTUAL FUNDS?
• As investment goals vary from person to person – post-retirement expenses,
money for children’s education or marriage, house purchase, etc.
• The investment products required to achieve these goals too vary. Mutual funds
provide certain distinct advantages over investing in individual securities.
• Mutual funds offer multiple choices for investment across equity shares,
corporate bonds, government securities, and money market instruments,
providing an excellent avenue for retail investors to participate and benefit from
the uptrends in capital markets.
• The main advantages are that you can invest in a variety of securities for a
relatively low cost and leave the investment decisions to a professional manager.
BANKS THAT PROFFER MUTUAL
FUNDS
Sundaram Financial Services Opportunities Fund. ...
Nippon India Banking & Financial Services Fund. ...
Tata Banking and Financial Services Fund. ...
Aditya Birla Sun Life Banking & Financial Services Fund. ...
ICICI Prudential Banking and Financial Services Fund. ...
Invesco India Financial Services Fund. ...
SBI Banking & Financial Services Fund.
HDFC Mutual Funds
HDFC Mutual Fund
• About HDFC Mutual Fund
One of India's largest mutual fund houses, HDFC Mutual Fund, has Rs 449169
crore assets under management as of Feb, 2023.

 The company's vision: To be the most respected Asset Manager in the world and the
mission is to be the wealth creator for every Indian.

HDFC Mutual Fund was established in 1999 as a joint venture


between the Housing Development Finance Corporation Limited (HDFC) and
Standard Life Investments Limited (SLI).
The fund house has become one of Indias largest and most
profitable mutual fund managers with the help of simple and accessible investment
products, systematic transactions, highly stable management and a diverse distribution
network.
It offers a comprehensive suit of mutual fund schemes across equity, debt
and hybrid categories along with fund of fund schemes and exchange-traded funds. The
fund house endeavors to provide investors with profitable investment opportunities,
without the need to worry about market volatility.
STATISTICS
The fund house has a strong position in equity investments and holds 10.91%
of the industry AUM. It has a retail and institutional customer base of 9.9
million live accounts as of 31st March 2022.
• HDFC Mutual Fund offers approximately 108 primary schemes.
• Of the 108 schemes, 58 are debt funds, 33 are equity-oriented, 6 are hybrid
schemes, and 11 others (ETFs, Gold, FoFs, etc.).
• They have an investment team of 29 highly competent members with a
consistent track record of performance, stability, and business
understanding.
• The company has a network of customers and investment partners across
200 cities.
Why to invest in HDFC?

With HDFC mutual fund SIP, the amount invested multiplies through compounding benefit as well.
This means that the interest earned on the investment also earns interest. Thus, it helps investors create a wealth
that comprises their own contribution along with the returns compounded, over the years.
 Benefits of investing in HDFC Mutual Fund SIP:
1.Provides Discipline Investment-

The key to a successful investment is discipline. With HDFC Mutual fund SIP, one can choose a fixed amount
minimum (as low as Rs.500) to invest per month. Since HDFC SIP Investment for mutual funds is very flexible
in nature, investors can also increase or decrease the amount of investment.
2. Realize Future Financial Goal-

As a smart investment tool, HDFC mutual fund SIP is apt for individuals who have set financial goals for the
future.
3. Take Advantage of Rupee-Cost Averaging-

Rupee-cost averaging is an effective investment strategy that can help minimize the need to time the market.
Most investors often invest in stocks when the price is low and sell them when the price is fairly higher. Thus,
timing the market is not only time-consuming but also riskier. On the contrary, with the advantage of rupee-
cost averaging, one just needs to invest a pre-determined amount continuously for a longer period of time.
4. Provides Benefit of Compounding-
It is more beneficial to invest a small amount regularly, rather than making one large
investment. This is because the lump-sum amount saved by an individual may not earn more
interest.
5. Do It Effortlessly-
Investing in HDFC mutual fund SIP is very simple and hassle-free. Investors just need to opt
the option of auto-debit from their bank account or submit post-dated cheques. According to the
amount chosen by the investors, the bank will invest the money per month in the fund option of
their choice.
CONCLUSION
• Mutual funds have advantages and disadvantages compared to direct investing in
individual securities.
• The advantages of mutual funds include economies of scale, diversification, liquidity, and
professional management.[3] However, these come with mutual fund fees and expenses.
• Mutual funds are regulated by governmental bodies and are required to publish
information including performance, comparison of performance to benchmarks, fees
charged, and securities held. A single mutual fund may have several share classes by
which larger investors pay lower fees.
From this project I successfully have understood the mechanism of
mutual funds, going further in depth the project helped me study the HDFC mutual funds
which enhanced my knowledge.

THANK YOU

kashish varma

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