WHAT IS MUTUAL FUND?

Mutual fund is a vehicle to assemble cash from financial specialists, to put resources into various markets and securities, in accordance with the venture targets settled upon, between the mutual fund and the speculators or investors.

 

Their essential part is to help speculators in gaining a wage or building their riches, by taking part in different options accessible in different securities and markets. It is workable for mutual funds to formulate a plan for any sort of venture goal. In this manner, the shared store structure (mutual fund), through its different plans, makes it conceivable to tap a huge corpus of cash from assorted investors or speculators.

 

WHY TO OPT MUTUAL FUNDS

 

The cash that is raised from financial specialists, eventually benefits governments, organizations or different sectors, straightforwardly or by implication, to bring funds to put up in different tasks or pay for different costs. As an investor, the shared assets can keep a mind the operations of the investee organization, and their corporate administration and moral norms. The undertakings that are encouraged through such financing, offer work to individuals; the salary they gain helps the representatives purchase products and enterprises offered by different organizations, hence supporting tasks of these merchandise and ventures organizations.  In this manner, general financial advancement is achieved.

 

OPERATION OF MUTUAL FUNDS

 

Mutual funds try to activate cash from every single conceivable investor or speculator. Different financial specialists have diverse venture inclinations.  Keeping in mind the end goal to suit these inclinations, common assets activate diverse pools of cash.  Each such pool of cash is referred to as a mutual fund scheme.  Each plan has a pre-declared venture objective.  At the point when financial specialists put resources into a shared store plot, they are adequately becoming tied up with its venture objective.

 

Mutual fund plans report their venture goal and look for speculations from the general population. Contingent upon how the plan is organized, it might be interested in acknowledge cash from financial specialists, either amid a constrained period just, or whenever.

 

MUTUAL FUNDS ADVANTAGES

 

  • PROFESSIONAL MANAGEMENT
  • PORTFOLIO DIVERSIFICATION
  • ECONOMIES OF SCALE
  • LIQUIDITY
  • TAX BENEFITS
  • REGULATORY COMFORT
  • SYSTEMATIC APPROACH TO INVESTMENTS

 

Given below are the contents of MUTUAL FUND DISTRIBUTORS module:

 

 

CHAPTER 1:  ROLE AND CONCEPT OF A MUTUAL FUND

 

  • INTRODUCTION
  • TYPES OF FUNDS
  • KEY DEVELOPMENTS OVER THE YEARS

 

CHAPTER 2: STRUCTURE AND CONSTITUENTS OF FUND

 

  • LEGAL STRUCTURE OF MUTUAL FUNDS IN INDIA
  • KEY CONSTITUENTS OF A MUTUAL FUND.
  • OTHER SERVICE PROVIDERS

 

CHAPTER 3: REGULATORY ENVIRONMENT AND LEGALITIES

 

  • ROLE OF REGULATORS IN INDIA
  • INVESTMENT RESTRICTIONS FOR SCHEMES
  • INVESTORS’ RIGHTS & OBLIGATIONS
  • CAN A MUTUAL FUND SCHEME GO BUST?

 

CHAPTER 4: OFFER DOCUMENT

 

  • OFFER DOCUMENT – NFO, SID, SAI
  • KEY INFORMATION MEMORANDUM

 

CHAPTER 5:  CHANNEL MANAGEMENT PRACTICES AND FUND DISTRIBUTION

 

  • DISTRIBUTION CHANNELS
  • CHANNEL MANAGEMENT PRACTICES

 

CHAPTER 6:  VALUATION, ACCOUNTING AND TAXATION

 

  • ACCOUNTING AND EXPENSE
  • VALUATION
  • TAXATION

 

CHAPTER 7:  SERVICES FOR INVESTORS

 

  • MUTUAL FUND INVESTORS
  • KYC REQUIREMENTS FOR MUTUAL FUND INVESTORS
  • PAN REQUIREMENTS FOR MICRO-SIP
  • ADDITIONAL DOCUMENTATION REQUIREMENTS APPLICABLE FOR INSTITUTIONAL INVESTORS
  • DEMAT ACCOUNT
  • TRANSACTIONS WITH MUTUAL FUNDS
  • TRANSACTIONS THROUGH THE STOCK EXCHANGE
  • INVESTMENT PLANS AND SERVICES.

 

CHAPTER 8:  RISK, RETURN AND PERFORMANCE OF FUNDS

 

  • DRIVERS OF RETURNS IN A SCHEME
  • MEASURES OF RETURNS
  • DRIVERS OF RISK IN A SCHEME
  • MEASURES OF RISK
  • BENCHMARKS AND PERFORMANCE
  • QUANTITATIVE MEASURES OF FUND MANAGER PERFORMANCE

 

CHAPTER 9:  HOW TO SELECT A SCHEME

 

  • HOW TO CHOOSE BETWEEN SCHEME CATEGORIES?
  • HOW TO SELECT A SCHEME WITHIN A SCHEME CATEGORY?
  • WHICH IS THE BETTER OPTION WITHIN A SCHEME?
  • SOURCES OF DATA TO TRACK MUTUAL FUND PERFORMANCE

 

CHAPTER 10:  HOW TO SELECT THE INVESTMENT PRODUCTS FOR INVESTORS

 

  • FINANCIAL AND PHYSICAL ASSETS
  • GOLD – PHYSICAL OR FINANCIAL?
  • REAL ESTATE – PHYSICAL OR FINANCIAL?
  • FIXED DEPOSIT OR DEBT SCHEME
  • NEW PENSION SCHEME
  • OTHER FINANCIAL PRODUCTS

 

CHAPTER 11:  FINANCIAL PLANNING

 

  • INTRODUCTION TO FINANCIAL PLANNING
  • ALTERNATE FINANCIAL PLANNING APPROACHES
  • LIFE CYCLE AND WEALTH CYCLE IN FINANCIAL PLANNING

 

CHAPTER 12:  FINANCIAL PLANS AND MODEL PORTFOLIOS

 

  • RISK PROFILING
  • ASSET ALLOCATION
  • MODEL PORTFOLIOS

 

 

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