CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Lakshminarayanan Alaguraja
Advocate
Altacit Global
WHAT IS A MUTUAL FUND?
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
A mutual fund is a professionally
managed type of collective investment
scheme that pools money from many
investors to buy stocks, bonds, shortterm money market instruments, and/
or other securities.
CONCEPT
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
•
•
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
•
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
•
A Mutual Fund is a trust that pools the savings of a number
of investors who share a common financial goal.
The money thus collected is then invested in capital
market instruments such as shares, debentures and other
securities.
The income earned through these investments and the
capital appreciation realized are shared by its unit holders
in proportion to the number of units owned by them.
Thus a Mutual Fund is the most suitable investment for the
common man as it offers an opportunity to invest in a
diversified, professionally managed basket of securities at
a relatively low cost.
History Of Mutual Funds
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
• Started in Europe in the mid 1800
• Massachuse Hs Investors Trust-First
official Mutual Funds
• First 27 years slow Growth& index
funds were born in 1970
• Major growth after IRA introduced.
MUTUAL FUNDS IN INDIA
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
The mutual fund industry in India started in
1963 with the formation of Unit Trust of
India, at the initiative of the Government of
India and Reserve Bank. The history of
mutual funds in India can be broadly divided
into four distinct phases.
1st Phase =
1964-1987
2nd Phase =
1987-1993
3rd Phase =
1993-2003
4th Phase =
2003
Mutual Fund Operation
Flow Chart
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
TYPES OF MUTUAL FUNDS
CHENNAI
Type of
Mutual Fund
Schemes
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Structure
Investment
Objective
Special
Schemes
Open Ended
Funds
Growth Funds
Industry Specific
Schemes
Close Ended
Funds
Income Funds
Index
Schemes
Interval Funds
Balanced Funds
Sectoral
Schemes
Money Market
Funds
TYPES OF MUTUAL FUNDS
SCHEMES
CHENNAI
3rd Floor, ‘Creative Enclave’,
•
– Open-Ended – anytime enter/exit
– Close-Ended Schemes – listed on exchange, redemption after
period of scheme is over.
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
•
COIMBATORE
•
info@altacit.com
WEBSITE
www.altacit.com
By Investment Objective
– Equity (Growth) – only in Stocks – Long Term (3 years or more)
– Debt (Income) – only in Fixed Income Securities (3-10 months)
– Liquid/Money Market (including gilt) – Short-term Money
Market (Govt.)
– Balanced/Hybrid – Stocks + Fixed Income Securities (1-3 years)
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
By Structure
Other Schemes
– Tax Saving Schemes
– Special Schemes
– ULIP
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
• SPECIAL SCHEMES
Funds based on Size of the Companies
Invested:
– Large cap funds
– Mid cap funds
– Small cap funds
REGULATION
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
SEBI (Mutual Funds) Regulations, 1996
Securities Exchange Board of India (“SEBI”),
the mutual funds regulator has clearly
defined rules, which govern mutual funds.
These rules relate to the formation,
administration and management of mutual
funds and also prescribe disclosure and
accounting requirements. Such a high level
of regulation seeks to protect the interest of
investors.
REASONS TO INVEST
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
EXPERT ON YOUR SIDE: When you invest in a mutual fund,
you buy into the experience and skills of a fund manager and
an army of professional analysts
LIMITED RISK: Mutual funds are diversification in action and
hence do not rely on the performance of a single entity.
MORE FOR LESS: For the price of one blue chip stock for
instance, you could get yourself a number of units across a
number of companies and industries when you invest in a
fund!
EASY INVESTING: You can invest in a mutual fund with as little
as Rs. 5,000. Salaried individuals also have the option of
investing in a monthly savings plan.
CONVENIENCE: You can invest directly with a fund house, or
through your bank or financial adviser, or even over the
internet.
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
INVESTOR PROTECTION: A mutual fund in India is registered
with SEBI, which also monitors the operations of the fund to
protect your interests.
QUICK ACCESS TO YOUR MONEY: It's good to know that
should you need your money at short notice, you can usually
get it in four working days.
TRANSPARENCY: As an investor, you get updates on the value
of your units, information on specific investments made by
the mutual fund and the fund manager's strategy and outlook.
LOW TRANSACTION COSTS: A mutual fund, by sheer scale of
its investments is able to carry out cost-effective brokerage
transactions.
TAX BENEFITS: Over the years, tax policies on mutual funds
have been favorable to investors and continue to be so.
HOW TO BUY?
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Identify ‘What to Buy’
HOW TO REDEEM?
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
RISK FACTORS OF MUTUAL
FUNDS
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
THE RISK-RETURN TRADE-OFF: The most important relationship to
understand is the risk-return trade-off. Higher the risk greater the
returns/loss and lower the risk lesser the returns/loss.
MARKET RISK: Sometimes prices and yields of all securities rise and
fall. Broad outside influences affecting the market in general lead to
this.
CREDIT RISK: The debt servicing ability of a company through its cash
flows determines the Credit Risk faced by you.
Inflation Risk: Inflation is the loss of purchasing power over time.
INTEREST RATE RISK: In a free market economy interest rates are
difficult if not impossible to predict.
POLITICAL/GOVERNMENT POLICY RISK: Changes in government
policy and political decision can change the investment environment.
LIQUIDITY RISK: Liquidity risk arises when it becomes difficult to sell
the securities that one has purchased.
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
*Mutual funds are subject to market
risk please read the offer document
carefully before investing.
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com