Mutual fund :
Mutual fund A pool of money collected from illiterate investors or investors who are risk averse yet need high returns, managed by a professional is called a Mutual Fund.
Features :
Features Funds are collectively managed for a common purpose.
Investor safety and trust are given highest preference.
Every mutual fund should cater to the norms prescribed by SEBI.
Each fund has its own objective based on which the portfolio is framed.
Mutual funds can be of many kinds, ETF’s, open ended, close ended etc.
Offer document :
Offer document The investment objective of the scheme is to provide income distribution and medium to long term capital gains.
Invests around 95 – 100 % of the funds in Equity and Equity related instruments (Listed).
Equity and Equity related instruments (Unlisted) has a weight age up to 5%.
Money market instruments have a weight age of possibly around 5 – 30 %.
Risk profile :
Risk profile Investors who look forward to buy units in this fund should have a high risk profile and an understanding of the mechanism of the stock market.
Advantages :
Advantages Highest returns among other funds of the company.
Compounded average growth rate of 29.26% from inception.
It has delivered 108% returns in previous year.
Fund manager invests the money in the top blue chip companies which have high market capitalization.
An open ended mutual fund where investors can get out easily whenever they want.
Disadvantages :
Disadvantages High risk involved corresponding to high returns.
Stock market performance directly corresponds to the performance of the fund.
Past performance cannot be taken for granted.
Should compromise on the monthly income.
Only the long term gains and capital appreciation can be enjoyed but not regular income.
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