FMI MF Bond Funds (2)

8/4/2019 FMI MF Bond Funds (2)

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An Analytical Study of Mutual Fund

Schemes

(Bond Funds)

Presented to: Prof. Prasad Akolkar

Presented by:

Name Roll no.

Chirag Badaya 02

Bhargava R. Sistla 55


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Concept

A Mutual Fund is a trust that pools the savings of anumber of investors who share a common financial goal.

The money thus collected is then invested in capitalmarket instruments such as shares, debentures and other

securities. The income earned through these investments and the

capital appreciation realised are shared by its unit holdersin proportion to the number of units owned by them.

Thus a Mutual Fund is the most suitable investment forthe common man as it offers an opportunity to invest in adiversified, professionally managed basket of securities ata relatively low cost.


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Source: http://www.mutualfundsindia.com


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Type of Mutual Fund Schemes

Structure

Open Ended Funds

Close Ended Funds

Interval Funds

Investment

Objective

Growth Funds

Income Funds

Balanced Funds

Money Market

Funds

Special Schemes

Industry SpecificSchemes

Index Schemes

Sectoral Schemes

Nature

Equity

FundDebt Funds

Gilt Funds

IncomeFunds

MIPs

Short term

Plans

LiquidFunds

Balanced

Funds

Types of Mutual Funds


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Bond Funds- Concept

Investment vehicle

Moderate returns-High safety

Large portfolio with minimal risk


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Risks Associated

Risks

Interest Rate Risk Credit Risk Delay Risk


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CRISIL Top 5


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Product comparisonFactor HDFC Income Fund BSL Dynamic Bond Fund

Nature Open Ended Income Scheme Open ended Income Scheme

Inception Date 11-Sep-2000 27-Sep-2004

Scheme Objective The objective of the scheme is to

optimise returns while maintaining a

balance of safety, yield and liquidity.

The objective of the scheme is to generate

optimal returns with high liquidity through

active management of the portfolio by

investing in High Quality Debt and Money

Market Instruments.

Asset allocation Debt instruments 80% - 100%

Money Market instruments 0- 20%

G-Sec- 50% to 60%

Corporate Bonds 25% - 35%

Cash/ Liquid instruments - 0% - 25%

Fund manager Mr. Shobhit Mehrotra

Mr. Miten Lathia

Mr. Maneesh Dangi

Risk profile Low to Medium Low to Medium

Entry load NIL NIL

Exit load 0.50- if within 180 days

Nil - After 180 days

0.50- if within 180 days

Nil - After 180 days

Benchmark CRISIL Composite Bond Fund Index CRISIL Composite Bond Fund Index


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ComparisonFactor HDFC Income Fund BSL Dynamic Bond Fund

Minimum Investment Rs. 5000 Rs. 5000

Portfolio Characteristics:

Avg. Maturity

Avg. Credit Rating

Avg. Yield to maturity (%)

No. Of Holdings

8.94 Yrs

AAA

-

19

4.30 Yrs

AA

9.63

30

Asset Allocation:

EquityDebt

Cash & Cash Equivalents

Commodities

(%)

0.0095.83

4.17

0.00

0.0094.72

5.28

0.00

Instrument Break up:

Debentures

GOI Sec

Cash/net Current Assets

Certificate of Deposit

Structured Obligation

Floating Rate Debenture

Bonds

(%)

48.19

45.84

4.17

1.80

NA

NA

NA

44.15

17.89

5.28

0.25

15.97

10.88

5.55

Source: Value Research


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HDFC Income Fund

BSL Dynamic Bond Fund


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FMI MF Bond Funds (2)

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Transcript of FMI MF Bond Funds (2)