1 / 9

Mutual Fund Basics

Get a detailed overview on how a mutual fund works, types of mutual funds and their advantages

DivyaRao
Download Presentation

Mutual Fund Basics

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Mutual Fund Basics

  2. What Does Mutual Fund Mean? • An investment vehicle that is made up of a pool of funds collected from many investors. • Mutual funds are operated by money mangers • Money managers invest the fund's capital and attempt to produce capital gains and income for the fund's investors. • A mutual fund's portfolio is created • The mutual fund portfolio maintained to match the investment objectives stated in its prospectus.

  3. How can Mutual Fund be Financially Beneficial • A fund pays out nearly all of the income it receives over the year to fund owners in the form of a distribution. • If the fund sells securities that have increased in price, the fund has a capital gain. • If fund holdings increase in price but are not sold by the fund manager, the fund's shares increase in price

  4. Advantages of Mutual Funds • Smart investment • Choice of risk • Options on liquidity • Tax benefits • More choice • Invest in instalments or lump sums • No big investment required • Well regulated • Low cost of asset management • Professional management

  5. Disadvantages of Mutual Funds • Professional Management • Costs • Dilution • Taxes

  6. Types of Mutual Funds • Money Market Funds • Bond/Income Funds • Balanced Funds • Equity Funds • Global/International Funds • Specialty Funds • Sector funds • Regional funds • Socially-responsible funds • Index Funds

  7. Key Things to Know Before Investing in Mutual Funds • Net asset value (NAV) • Finding Funds • Identifying Goals and Risk Tolerance • Evaluate Performance of A Mutual Fund

  8. Direct vs. Regular Mutual Funds • Direct scheme- Direct mutual fund gives no commission to the broker or distributor from the investment of the shareholder • Regular scheme- The regular mutual fund offers commissions to the advisor, distributor, or broker from the investment amount. 

  9. Thank You!!!

More Related