SECURITY ANALYSIS &PORTFOLIO MANGEMENT

TYPES OF MUTUAL FUNDS

PRESENTED BYM INDRAJA 15331E0075

CONTENTS

• INTRODUTION TO MUTUAL FUNDS • TYPES OF MUTUAL FUNDS– On the basis of lock in period – On the basis of investment – Other funds

MUTUAL FUNDS: INTRODUTION

• Mutual Fund is an investment house where investor

pools in money for investment in a basket of diversified

assets, managed by professionals at relatively low cost.

• The funds collected are invested in various instruments such as

capital market, money market and debt market instruments.

• The investors get units in numbers on their investment

INTRODUTION

TYPES OF MUTUAL FUND

On the basis of lock in period • Open ended funds • Closed ended funds

On the basis of investment • EQUITY • ELSS• DEBT • BALANCED • SECTORAL

ON THE BASIS OF LOCK-IN PERIOD

MUTUAL FUND

OPEN-ENDED CLOSED-ENDED

OPEN ENDED MUTUAL FUNDS• Any time entry and exit• Liquidity can be maintained by investing in open

ended funds• Difficult to manage the funds, as the money flows in

and out, so the total funds get changed frequently• The units are brought and sold at NAV

CLOSED-ENDED MUTUAL FUNDS

• Minimum lock in period of 3 years• Short term returns are not possible• Number of units do not fluctuate on daily basis• Hence the number of units also remains same except

through bonus or right issue• A new investor can buy units of close ended funds

through secondary market

ON THE BASIS OF INVESTMENT

MUTUAL FUNDS

EQUITY

ELSS

DEBT

BALANCED

SECTORAL

EQUITY BASED MUTUAL FUND

• A mutual fund that invests principally in stocks• A minimum of 65% of total investment should be

in Indian equity• It includes various types such as

LARGE CAP: Investment in companies having market capitalization more than $10 billion. MID CAP: Investment in companies having market capitalization between $2 billion to $10 billion.

DEBT BASED MUTUAL FUNDS

It includes different types of schemes such as• Gilt Funds:

These funds invest exclusively in government securities.

Government securities have no default risk.• CORPORATE BONDS: For example ICICI prudential

corporate bond fund• COMBINED: This better than the above two

because investment only guilt securities may not even cover the inflation cost

Balanced Fund

• It is a balanced fund of Equity and Debt• The investment is done in both equity and

debt• For tax benefit investment in Indian equity

should account for 65%

ELSS FUND

• ELSS is a type of diversified equity mutual fund• Qualified for tax exemption under 80C• Investment up to 150000 are exempted under

this section• It is usually comes with a lock in period of 3

years

SECTORAL FUNDS

• Investments is done in stocks of a particular sector

• This funds have high risk but also give high returns

OTHER FUNDS

• International funds • Quant funds • Arbitrage funds

THANK YOU