funds

These are the funds/schemes which invest in the securities of only those sectors or industries as specified in the offer documents. e.g. Pharmaceuticals, Software, Fast Moving Consumer Goods (FMCG), Petroleum stocks, etc. Thematic funds are those fund which invest in a stocks which will...

An insurance segregated fund is an insurance contract issued under insurance legislation by an insurance company. Its value is based on the performance of a portfolio of marketable securities, such as stocks and bonds. As an insurance contract, a segregated fund is an obligation of an...

Pooled Funds A "pooled fund" is a unit trust in which investors contribute funds that are then invested, or managed, by a third party. A pooled fund operates like a mutual fund, but is not required to have a prospectus under securities law. Pooled funds are offered by trust companies...

The riskiest among equity funds, sector funds invest only in stocks of a specific industry, say IT or FMCG. A sector fund’s NAV will zoom if the sector performs well; however, if the sector languishes, the scheme’s NAV too will stay depressed. Barring a few defensive, evergreen sectors like FMCG...

A scheme can also be classified as growth scheme, income scheme, or balanced scheme considering its investment objective. Such schemes may be open-ended or close-ended schemes as described earlier. Such schemes may be classified mainly as follows: a) Growth / Equity Oriented Schemes The aim...

1963 Establishment of Unit Trust of India 1964 Unit Scheme 1964 launched 1987 Entry of non-UTI, Public Sector mutual funds 1993 Entry of private sector funds First Mutual Fund regulations came into being 1996 Substitution of prevalent rules by SEBI (Mutual Funds) Regulations 1996 2003 UTI...

Mutual funds are good investment vehicles to navigate the complex and unpredictable world of investments. However, even mutual funds have some inherent drawbacks. Understand these before you commit your money to a mutual fund. 1. No assured returns and no protection of capital If you are...

1. Professional Management Mutual Funds provide the services of experienced and skilled professionals, backed by a dedicated investment research team that analyses the performance and prospects of companies and selects suitable investments to achieve the objectives of the scheme. This risk...

The one investment vehicle that has truly come of age in India in the past decade is mutual funds. Today, the mutual fund industry in the country manages around Rs 329,162 crore (As of Dec, 2006) of assets, a large part of which comes from retail investors. And this amount is invested not just...

The Commission has to maintain proper accounts and other relevant records and prepare an annual statement of accounts, including the profit and loss account and the balance sheet in such form as prescribed by the Central Government in consultation with the Comptroller and Auditor-General of...

Computing of funds is done on the bass of the following: (a) Khadi fund is computed on the basis of its applications for the purposes relating to khadi. (b) The village industries fund is computed on the basis of its applications for the purposes relating to village industries and products of...

National Saving Certificate and Public Provident Fund: NSCs and PPFs are safe and secure investment method but return is less compared to current bank interest rates and share market returns. Bonds, Chit Funds and Company FDs: Other possible investment options are bonds, chit funds and...

Significance: 1. The ratio is of practical significance for the prospective investors. If the ratio is higher they feel confident and encouraged to invest in the company. 2. The effect of high ratio will be seen in the market price of the share and such share will be frequently traded in the...

Would you like to lend funds into the stock market, without suffering the slightest risk? Traditional methods of loaning money into the stock market suffer from (a) price risk of shares and (b) credit risk of default of the counter-party. What is new about the index futures market is that it...

Have you ever been in a situation where you had funds which needed to get invested in equity? Or of expecting to obtain funds in the future which will get invested in equity. Some common occurrences of this include: • A closed-end fund which just finished its initial public offering has cash...

RECCOMMENDATION • Mutual fund requires managers who have clear understanding of the emerging market potential , investors preference & the fundamentals of macroeconomics • Product should designed for emerging risk taking type as well as...

Major mutual fund companies in India Some of the Mutual Funds In India are discussed below:- Reliance Mutual Funds Reliance Mutual Fund (RMF) was established as trust under Indian Trusts Act, 1882. The sponsor of RMF is Reliance Capital Limited and Reliance Capital Trustee Co. Limited is the...

SWOT Analysis Of Mutual Funds STRENGTHS Large number of potential customers are base. Government support by way of tax concession for MF investors Volatility of bank interest rate. Better scope for accessing market information Offer liquidity to the investors at any time. Offers...

Risk associated with Mutual funds 1. 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. 2. Market Risk Sometimes prices and yields of all securities rise and...

Drawbacks of Mutual Funds Mutual funds have their drawbacks and may not be for everyone: 1. No Guarantees No investment is risk free. If the entire stock market declines in value, the value of mutual fund shares will go down as well, no matter how balanced the portfolio. Investors...