Description
A mutual fund is a type of professionally managed collective investment vehicle that pools money from many investors to purchase securities
SUMMER INTERNSHIP PROJECT PRESENTATION
? PROJECT ON MUTUAL FUND AND IPO
PROCESSING
HISTORY OF COMPANY
? SMC Group, founded in 1990, is India’s best Equity
broking House and the Largest Distribution Network.
? A growing network of 2500+ offices spread across 460
cities/towns in India.
? We offer a diverse range of financial services . ? A highly efficient workforce of over 4000 employees and
over 9000 financial advisors serving the financial needs of more than 7, 00,000 satisfied investors.
MEMBERSHIP AND CERTIFICATION
? Trading Member of NSE, BSE, NCDEX, MCX, DGCX. ? Depository Participant with CDSL & NSDL . ? Corporate
Insurance (Registered with IRDA)
Broker
for
Life
&
General
Insurance
? Distributor of IPOs & Mutual Funds (Registered with AMFI) ? Portfolio Management Services (PMS) registered with SEBI ? Non Banking Financial Company (NBFC) registered with RBI
HISTORY OF MUTUAL FUND IN INDIA
? 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.
? First Phase – 1964-87. ? Second Phase – 1987-1993(Entry of Public Sector Funds). ? Third Phase – 1993-2003 (Entry of Private Sector Funds).
WHAT IS MUTUAL FUND?
? 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.
TYPES OF SCHEMES
? Open Ended Schemes. ? Close Ended Schemes. ? Interval Schemes. ? Tax Saving Schemes. ? Sector Specific Schemes. ? Options: ? Growth Option. ? Dividend Option. ? Dividend Reinvestment Option. ? Dividend Payout Option.
CALCULATION OF DIVIDEND PAYOUT OPTION
? Investment Amount = ? NAV ? No. of units ? Dividend ? Exit load ? NAV ? Total Amount ?
Rs.10000 Rs. 10/unit 1000 units Rs. 1/unit 1% of NAV Rs.9.9/unit 9900+1000 Rs.10900
= = = = = = =
CALCULATION OF DIVIDEND REINVESTMENT OPTION
Amount NAV No. of units Dividend Total amount Now, no. of units
= = = = = = = =
Rs. 10000 Rs.10/unit 1000 units Rs.1/unit 10000+1000 Rs.11000 11000/10 1100 units
BENEFITS OF INVESTING IN MUTUAL FUNDS
? Affordable. ? Professional Management. ? Diversification. ? Liquidity.
FREQUENTLY USED TERMS
? NetAssetValue(NAV)
The Term Net Asset Value (NAV) is used by investment companies to measure net assets. It is calculated by subtracting liabilities from the value of a fund's securities and other items of value and dividing this by the number of outstanding shares (units).
?
NAV is calculated each day by taking the closing market value of all securities owned plus all other assets such as cash, subtracting all liabilities, and then dividing the result (total net assets) by the total number of shares outstanding.
Calculating NAVs - Calculating mutual fund net asset values is easy. Simply take the current market value of the fund's net assets (securities held by the fund minus any liabilities) and divide by the number of shares outstanding. So if a fund had net assets of Rs.50 Lakh and there are one Lakh shares of the fund, then the price per share (or NAV) is Rs.50.00.
?
CO N T… … … …
? Systematic Investment Plan(SIP)
? A SIP is nothing but a planned investment programme,
which takes a small sum of money from you and invests it in a mutual fund at regular intervals. The minimum amount can be as small as Rs 500 and the frequency of investment is usually monthly or quarterly.
MUTUAL FUND RETURNS
20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% Equity Mutual Fund FD's
Source:www.investopedia. com
TAXATION ON MUTUAL FUND(EQUITY)
? Dividends received is completely exempt from tax under section
10(35) of the Income Tax Act 1961
? Short term (period of less than 12 months) ,if capital gain or profit ,
short Term Capital gain(STCG) subject to taxation @15% plus education Cess 3%.
? There is no tax liability towards any LONG TERM CAPITAL
GAIN(LTCG)
? ELSS enjoys deduction up to 100,000/- under Section 80 C of the
Income Tax
? Securities Transaction Tax(STT) @0.25% .This is levied at the time
of redemption of mutual fund units.
?
THANK YOU
? ANY QUESTIONS……………
doc_659317827.pptx
A mutual fund is a type of professionally managed collective investment vehicle that pools money from many investors to purchase securities
SUMMER INTERNSHIP PROJECT PRESENTATION
? PROJECT ON MUTUAL FUND AND IPO
PROCESSING
HISTORY OF COMPANY
? SMC Group, founded in 1990, is India’s best Equity
broking House and the Largest Distribution Network.
? A growing network of 2500+ offices spread across 460
cities/towns in India.
? We offer a diverse range of financial services . ? A highly efficient workforce of over 4000 employees and
over 9000 financial advisors serving the financial needs of more than 7, 00,000 satisfied investors.
MEMBERSHIP AND CERTIFICATION
? Trading Member of NSE, BSE, NCDEX, MCX, DGCX. ? Depository Participant with CDSL & NSDL . ? Corporate
Insurance (Registered with IRDA)
Broker
for
Life
&
General
Insurance
? Distributor of IPOs & Mutual Funds (Registered with AMFI) ? Portfolio Management Services (PMS) registered with SEBI ? Non Banking Financial Company (NBFC) registered with RBI
HISTORY OF MUTUAL FUND IN INDIA
? 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.
? First Phase – 1964-87. ? Second Phase – 1987-1993(Entry of Public Sector Funds). ? Third Phase – 1993-2003 (Entry of Private Sector Funds).
WHAT IS MUTUAL FUND?
? 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.
TYPES OF SCHEMES
? Open Ended Schemes. ? Close Ended Schemes. ? Interval Schemes. ? Tax Saving Schemes. ? Sector Specific Schemes. ? Options: ? Growth Option. ? Dividend Option. ? Dividend Reinvestment Option. ? Dividend Payout Option.
CALCULATION OF DIVIDEND PAYOUT OPTION
? Investment Amount = ? NAV ? No. of units ? Dividend ? Exit load ? NAV ? Total Amount ?
Rs.10000 Rs. 10/unit 1000 units Rs. 1/unit 1% of NAV Rs.9.9/unit 9900+1000 Rs.10900
= = = = = = =
CALCULATION OF DIVIDEND REINVESTMENT OPTION
Amount NAV No. of units Dividend Total amount Now, no. of units
= = = = = = = =
Rs. 10000 Rs.10/unit 1000 units Rs.1/unit 10000+1000 Rs.11000 11000/10 1100 units
BENEFITS OF INVESTING IN MUTUAL FUNDS
? Affordable. ? Professional Management. ? Diversification. ? Liquidity.
FREQUENTLY USED TERMS
? NetAssetValue(NAV)
The Term Net Asset Value (NAV) is used by investment companies to measure net assets. It is calculated by subtracting liabilities from the value of a fund's securities and other items of value and dividing this by the number of outstanding shares (units).
?
NAV is calculated each day by taking the closing market value of all securities owned plus all other assets such as cash, subtracting all liabilities, and then dividing the result (total net assets) by the total number of shares outstanding.
Calculating NAVs - Calculating mutual fund net asset values is easy. Simply take the current market value of the fund's net assets (securities held by the fund minus any liabilities) and divide by the number of shares outstanding. So if a fund had net assets of Rs.50 Lakh and there are one Lakh shares of the fund, then the price per share (or NAV) is Rs.50.00.
?
CO N T… … … …
? Systematic Investment Plan(SIP)
? A SIP is nothing but a planned investment programme,
which takes a small sum of money from you and invests it in a mutual fund at regular intervals. The minimum amount can be as small as Rs 500 and the frequency of investment is usually monthly or quarterly.
MUTUAL FUND RETURNS
20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% Equity Mutual Fund FD's
Source:www.investopedia. com
TAXATION ON MUTUAL FUND(EQUITY)
? Dividends received is completely exempt from tax under section
10(35) of the Income Tax Act 1961
? Short term (period of less than 12 months) ,if capital gain or profit ,
short Term Capital gain(STCG) subject to taxation @15% plus education Cess 3%.
? There is no tax liability towards any LONG TERM CAPITAL
GAIN(LTCG)
? ELSS enjoys deduction up to 100,000/- under Section 80 C of the
Income Tax
? Securities Transaction Tax(STT) @0.25% .This is levied at the time
of redemption of mutual fund units.
?
THANK YOU
? ANY QUESTIONS……………
doc_659317827.pptx