MUTUAL FUNDS
Presented By:
KAMLESH MEHRA
-: CONCEPT OF
MUTUAL FUNDS :-
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 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. The flow chart below describes broadly the working of a mutual fund:
MUTUAL FUND OPERATION FLOW CHART
ORGANIZATIONAL STRUCTURE OF MUTUAL FUND IN INDIA
Organizational Structure of Mutual Fund
Sponsor
Akin to the Promoter of the company, Contribution of minimum 40% of net worth of AMC, Posses sound financial record over five years period, Establishes the Fund, Gets it registered with the SEBI, Forms a trust, & appoints Board of trustee. Holds assets on behalf of unit holders in trust, Trustees are caretaker of unit holders money, Two third of the trustees shall be independent persons (not associated with the sponsor), Trustees ensure that the system, processes & personnel are in place, Resolves unit holders GRIEVANCES, Appoint AMC & Custodian, & ensure that all activities are accordance with the SEBI regulation.
Trustees
Custodian
Holds the fund·s securities in safekeeping, Settles securities transaction for the fund, Collects interest & dividends paid on securities, Records information on corporate actions.
Asset Management Company
Floats schemes & manages according to SEBI, Can not undertake any other business activity, other than portfolio mgmt services, 75% of unit holders can jointly terminate appointment of AMC, At least 50% of independent directors, Chairman of AMC can not be a trustee of any MF.
Distributor / Agents
Sell units on the behalf of the fund, It can be bank, NBFCs, individuals.
Organizational Structure of Mutual Fund
Banker
Facilitates financial transactions, Provides remittance facilities.
Registrar & Transfer Agent
Maintains records of unit holders· accounts & transactions Disburses & receives funds from unit holder transactions, Prepares & distributes a/c settlements, Tax information, handles unit holder communication, Provides unit holder transaction services.
-: HISTORY OF MF INDUSTRY IN INDIA:
The origin of mutual fund industry in India is with the introduction of the concept of mutual fund by UTI in the year 1963. Though the growth was slow, but it accelerated from the year 1987 when non-UTI players entered the industry. In the past decade, Indian mutual fund industry had seen a dramatic improvements, both quality wise as well as quantity wise. The main reason of its poor growth is that the mutual fund industry in India is new in the country. Large sections of Indian Investors are yet to be intellectuated with the concept. Hence, it is the prime responsibility of all mutual fund companies, to market the product correctly with its latest developments of selling.
-: MUTUAL FUNDS ORGANIZATION :First Phase - 1964-87 1964Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6,700 crores of assets under management.
-: MUTUAL FUNDS ORGANIZATION :Second Phase - 1987-1993 (Entry of Public Sector Funds) 1987
1987-Marked entry of Public Sector Banks. LIC and GIC June 87-S.B.I was first Non-Unit Trust of India institution to set-up the Mutual Fund 1989-LIC Entered the Mutual Fund Space 1990- GIC Entered the Mutual Fund Markets The end of 1993 marked Rs.47,004 as assets under management.
-: MUTUAL FUNDS ORGANIZATION :Third Phase - 1993-2003 (Entry of Private Sector Funds) 1993
1993-Entry of Private Players SEBI Laid Guidelines for all players except Unit Trust of India 1996- SEBI(Mutual Fund) Regulations passed. 2003- 33 Mutual Fund Players were in the Indian Market 2003- AUM 1,21,805 cr.
-: Mutual Funds Organization :Fourth Phase - Since February 2003
Unit Trust of India Bi-fircated into two entities UTI-Mutual Fund, sponsored by SBI, PNB, BOB and LIC UTI-Mutual Fund governed by SEBI Regulations 1996 Unit Trust of India only covers US-64
REGULATIONS
SEBI
SEBI's introduction of SEBI (Mutual Funds) Regulation in 1993 is to have direct control on all mutual funds of both public and private sector. The MFs are regulated under the SEBI(MF) Regulation 1996 ± All MFs registered with it, constituted as trusts ( under Indian Trusts Act, 1882) Bank operated MFs supervised by RBI too AMC registered as Companies registered under Companies Act, 1956 SEBI- Very detailed guidelines for disclosures in offer document, offer period, investment guidelines etc. ± NAV to be declared everyday for open-ended, every week for closed ended ± Disclose on website, AMFI, newspapers ± Half-yearly results, annual reports ± Select Benchmark depending on scheme and compare
Association of Mutual Funds in India (AMFI):
Association of Mutual Funds in India (AMFI) was incorporated on 22nd August, 1995. AMFI is an apex body of all Asset Management Companies (AMC) which has been registered with SEBI. AMFI has brought down the Indian Mutual Fund Industry to a professional and healthy market with ethical lines enhancing and maintaining standards. It follows the principle of both protecting and promoting the interests of mutual funds as well as their unit holders.
OBJECTIVES OF AMFI
It recommends and promotes the top class business practices and code of conduct. AMFI interacts with SEBI and works according to SEBIs guidelines in the mutual fund industry. AMFI represent the Government of India, the RBI a and other related bodies on matters relating to the Mutual Fund Industry. It develops a team of well qualified and trained Agent distributors. AMFI undertakes all India awareness programme.
CLASSIFICATION OF MUTUAL FUND SCHEMES
AMFI Classification of MF Schemes
Fund schemes
Growth & Income Balanced Liquid & Money Market Gilt ELSS Fund of funds ETFs
Portfolio objectives
High Risk & High Return Moderate Risk & Return Fixed Return Zero Risk Tax Saving Additional diversification Market Driven
CLASSIFICATION OF MUTUAL FUND SCHEMES
Other classification of MF schemes
?By Structure
Open-Ended anytime enter/exit Close-Ended Schemes listed on exchange, redemption after period of scheme is over.
?By Investment Objective
Equity (Growth) only in Stocks Long Term (3 years or more) Debt (Income) only in Fixed Income Securities Liquid/Money Market Short-term Money Market (CPs, CDs, Treasury Bills) Balanced/Hybrid Stocks + Fixed Income Securities (1-3 years) Gilt Funds primarily in G-Sec
?Other Schemes
Tax Saving Schemes such as ELSS Special Schemes (ETFs, foreign funds
-: ADVANTAGES OF MUTUAL FUNDS :The advantages of investing in a Mutual Fund are: Diversification: The best mutual funds design their portfolios so individual Investments will react differently to the same economic conditions. For example, economic conditions like a rise in interest rates may cause certain securities in a Diversified portfolio to decrease in value. Other securities in the portfolio will respond to the same economic conditions by increasing in value. When a portfolio is balanced in this way, the value of the overall portfolio should gradually increase over time, even if some securities lose value. Professional Management: Most mutual funds pay topflight professionals to manage their investments. These managers decide what securities the fund will buy and sell. Regulatory oversight: Mutual funds are subject to many government regulations that protect investors from fraud.
-: ADVANTAGES CONTD . :
Liquidity: It's easy to get your money out of a mutual fund. Write a check, make a call, and you've got the cash. Convenience: You can usually buy mutual fund shares by mail, phone, or over the Internet. Low cost: Mutual fund expenses are often no more than 1.5 percent of your investment. Expenses for Index Funds are less than that, because index funds are not actively managed. Instead, they automatically buy Stock in companies that are listed on a specific index Transparency Flexibility Choice of schemes Tax Benefits Well regulated
-: DRAWBACKS OF MUTUAL FUNDS :
Mutual funds have their drawbacks and may not be for everyone: 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 encounter fewer risks when they invest in mutual funds than when they buy and sell stocks on their own. However, anyone who invests through a mutual fund runs the risk of losing money. Fees and commissions: All funds charge administrative fees to cover their day-to-day expenses. Some funds also charge sales commissions or "loads" to compensate brokers, financial consultants, or financial planners. Even if you don't use a broker or other financial adviser, you will pay a sales commission if you buy shares in a Load Fund. Taxes: During a typical year, most actively managed mutual funds sell anywhere from 20 to 70 percent of the securities in their portfolios.
-: NET ASSET VALUE
NAV) represents a fund's per share market value. This is the price at which investors buy ("bid price") fund shares from a fund company and sell them ("redemption price") to a fund company. It is derived by dividing the total value of all the cash and securities in a fund's portfolio, less any liabilities, by the number of shares outstanding. An NAV computation is undertaken once at the end of each trading day based on the closing market prices of the portfolio's securities.
-: NET ASSET VALUE EXAMPLE:
For example, if a fund has assets of $50 million and liabilities of $10 million, it would have a NAV of $40 million. This number is important to investors, because it is from NAV that the price per unit of a fund is calculated. By dividing the NAV of a fund by the number of outstanding units, you are left with the price per unit. In our example, if the fund had 4 million shares outstanding, the price-pershare value would be $40 million divided by 4 million, which equals $10.
-: MUTUAL FUNDS COMPANIES IN INDIA :* ABN-AMRO * Baroda Pioneer Mutual Fund * Benchmark * Birla Sunlife * Canbank * DBS Chola * Deutsche * DSP Merrill Lynch * Escorts * Fidelity * Franklin Templeton * HDFC * Standard Chartered * HSBC * UTI * ING Vysya * JM Financial * LIC * Morgan Stanley * Principal * Prudential ICICI * Reliance * SBI * Sahara * Sundaram BNP Paribas * Tata
TOP 15 FUNDS - PERIOD (LAST 12 MONTHS)
Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Scheme Name Reliance Gold Exchange Traded Fund - Dividend SBI Gold Exchange Traded Scheme UTI Gold Exchange Traded Fund Kotak Gold ETF Quantum Gold Exchange Traded Fund - Growth Religare Gold Exchange Traded Fund HDFC Gold Exchange Traded Fund Axis Gold ETF GS Gold BeES ICICI Prudential Gold Exchange Traded Fund ICICI Prudential FMCG - Growth Canara Robeco InDiGo Fund - Growth Sahara Short Term Bond Fund - Growth Peerless Short Term Fund - Growth Tata Fixed Income Portfolio Fund - Series C3 - Ret - Growth Date Dec 1 , 2011 Dec 1 , 2011 Dec 1 , 2011 Dec 1 , 2011 Dec 1 , 2011 Dec 1 , 2011 Dec 1 , 2011 Dec 1 , 2011 Dec 1 , 2011 Dec 1 , 2011 Dec 1 , 2011 Dec 1 , 2011 Dec 1 , 2011 Dec 1 , 2011 Dec 1 , 2011 NAV (Rs.) 2757.8452 2887.5654 2833.858 2832.3254 1409.0144 2910.4623 2889.1295 2886.5036 2820.2713 2906.7319 76.7 12.1232 12.5445 11.4931 13.6836
INDIAN MUTUAL FUNDS FUTURE GROWTH FACTS
In the past 6 years, Mutual Funds in India have recorded a growth of 100 %. In India, the rate of saving is 24 %. In the future, there lies a big possibility for the Indian Mutual Funds industry to expand. Quite a lot of asset management companies which are foreign based is now entering the Indian markets. A number of commodity Mutual Funds are introduced now. The SEBI (Securities Exchange Board of India) has approved the permission for it. More emphasis is put on the effective Mutual Funds governance. There is also sufficient scope for the Indian Mutual funds to enter into the semi-urban and rural areas. Financial planners will play a major role in the Mutual Funds market by providing people with proper financial planning.
-: CREATION OF PORTFOLIO :
Set realistic targets based on appropriate benchmarks. Decide on an appropriate investment philosophy i.e whether to capitalize on economic cycles, or to focus on growth sectors or on finding value stocks. Avoid over diversification. Although diversification is major strength is a major strength of mutual fund.
-: PORTFOLIO REVISION :?
Fund managers keep churning their portfolio depending upon their outlook for the market, sector or company. Portfolio revision (depending on changing market outlook and evolving trends). This churning can be done very frequently or may be done after sufficient time gaps. Portfolio revision is done if the fund managers feel in coming months there will be changes in economic scenario or world global market.
?
?
?
THANK YOU
doc_597872379.pptx
Presented By:
KAMLESH MEHRA
-: CONCEPT OF
MUTUAL FUNDS :-
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 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. The flow chart below describes broadly the working of a mutual fund:
MUTUAL FUND OPERATION FLOW CHART
ORGANIZATIONAL STRUCTURE OF MUTUAL FUND IN INDIA
Organizational Structure of Mutual Fund
Sponsor
Akin to the Promoter of the company, Contribution of minimum 40% of net worth of AMC, Posses sound financial record over five years period, Establishes the Fund, Gets it registered with the SEBI, Forms a trust, & appoints Board of trustee. Holds assets on behalf of unit holders in trust, Trustees are caretaker of unit holders money, Two third of the trustees shall be independent persons (not associated with the sponsor), Trustees ensure that the system, processes & personnel are in place, Resolves unit holders GRIEVANCES, Appoint AMC & Custodian, & ensure that all activities are accordance with the SEBI regulation.
Trustees
Custodian
Holds the fund·s securities in safekeeping, Settles securities transaction for the fund, Collects interest & dividends paid on securities, Records information on corporate actions.
Asset Management Company
Floats schemes & manages according to SEBI, Can not undertake any other business activity, other than portfolio mgmt services, 75% of unit holders can jointly terminate appointment of AMC, At least 50% of independent directors, Chairman of AMC can not be a trustee of any MF.
Distributor / Agents
Sell units on the behalf of the fund, It can be bank, NBFCs, individuals.
Organizational Structure of Mutual Fund
Banker
Facilitates financial transactions, Provides remittance facilities.
Registrar & Transfer Agent
Maintains records of unit holders· accounts & transactions Disburses & receives funds from unit holder transactions, Prepares & distributes a/c settlements, Tax information, handles unit holder communication, Provides unit holder transaction services.
-: HISTORY OF MF INDUSTRY IN INDIA:
The origin of mutual fund industry in India is with the introduction of the concept of mutual fund by UTI in the year 1963. Though the growth was slow, but it accelerated from the year 1987 when non-UTI players entered the industry. In the past decade, Indian mutual fund industry had seen a dramatic improvements, both quality wise as well as quantity wise. The main reason of its poor growth is that the mutual fund industry in India is new in the country. Large sections of Indian Investors are yet to be intellectuated with the concept. Hence, it is the prime responsibility of all mutual fund companies, to market the product correctly with its latest developments of selling.
-: MUTUAL FUNDS ORGANIZATION :First Phase - 1964-87 1964Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6,700 crores of assets under management.
-: MUTUAL FUNDS ORGANIZATION :Second Phase - 1987-1993 (Entry of Public Sector Funds) 1987
1987-Marked entry of Public Sector Banks. LIC and GIC June 87-S.B.I was first Non-Unit Trust of India institution to set-up the Mutual Fund 1989-LIC Entered the Mutual Fund Space 1990- GIC Entered the Mutual Fund Markets The end of 1993 marked Rs.47,004 as assets under management.
-: MUTUAL FUNDS ORGANIZATION :Third Phase - 1993-2003 (Entry of Private Sector Funds) 1993
1993-Entry of Private Players SEBI Laid Guidelines for all players except Unit Trust of India 1996- SEBI(Mutual Fund) Regulations passed. 2003- 33 Mutual Fund Players were in the Indian Market 2003- AUM 1,21,805 cr.
-: Mutual Funds Organization :Fourth Phase - Since February 2003
Unit Trust of India Bi-fircated into two entities UTI-Mutual Fund, sponsored by SBI, PNB, BOB and LIC UTI-Mutual Fund governed by SEBI Regulations 1996 Unit Trust of India only covers US-64
REGULATIONS
SEBI
SEBI's introduction of SEBI (Mutual Funds) Regulation in 1993 is to have direct control on all mutual funds of both public and private sector. The MFs are regulated under the SEBI(MF) Regulation 1996 ± All MFs registered with it, constituted as trusts ( under Indian Trusts Act, 1882) Bank operated MFs supervised by RBI too AMC registered as Companies registered under Companies Act, 1956 SEBI- Very detailed guidelines for disclosures in offer document, offer period, investment guidelines etc. ± NAV to be declared everyday for open-ended, every week for closed ended ± Disclose on website, AMFI, newspapers ± Half-yearly results, annual reports ± Select Benchmark depending on scheme and compare
Association of Mutual Funds in India (AMFI):
Association of Mutual Funds in India (AMFI) was incorporated on 22nd August, 1995. AMFI is an apex body of all Asset Management Companies (AMC) which has been registered with SEBI. AMFI has brought down the Indian Mutual Fund Industry to a professional and healthy market with ethical lines enhancing and maintaining standards. It follows the principle of both protecting and promoting the interests of mutual funds as well as their unit holders.
OBJECTIVES OF AMFI
It recommends and promotes the top class business practices and code of conduct. AMFI interacts with SEBI and works according to SEBIs guidelines in the mutual fund industry. AMFI represent the Government of India, the RBI a and other related bodies on matters relating to the Mutual Fund Industry. It develops a team of well qualified and trained Agent distributors. AMFI undertakes all India awareness programme.
CLASSIFICATION OF MUTUAL FUND SCHEMES
AMFI Classification of MF Schemes
Fund schemes
Growth & Income Balanced Liquid & Money Market Gilt ELSS Fund of funds ETFs
Portfolio objectives
High Risk & High Return Moderate Risk & Return Fixed Return Zero Risk Tax Saving Additional diversification Market Driven
CLASSIFICATION OF MUTUAL FUND SCHEMES
Other classification of MF schemes
?By Structure
Open-Ended anytime enter/exit Close-Ended Schemes listed on exchange, redemption after period of scheme is over.
?By Investment Objective
Equity (Growth) only in Stocks Long Term (3 years or more) Debt (Income) only in Fixed Income Securities Liquid/Money Market Short-term Money Market (CPs, CDs, Treasury Bills) Balanced/Hybrid Stocks + Fixed Income Securities (1-3 years) Gilt Funds primarily in G-Sec
?Other Schemes
Tax Saving Schemes such as ELSS Special Schemes (ETFs, foreign funds
-: ADVANTAGES OF MUTUAL FUNDS :The advantages of investing in a Mutual Fund are: Diversification: The best mutual funds design their portfolios so individual Investments will react differently to the same economic conditions. For example, economic conditions like a rise in interest rates may cause certain securities in a Diversified portfolio to decrease in value. Other securities in the portfolio will respond to the same economic conditions by increasing in value. When a portfolio is balanced in this way, the value of the overall portfolio should gradually increase over time, even if some securities lose value. Professional Management: Most mutual funds pay topflight professionals to manage their investments. These managers decide what securities the fund will buy and sell. Regulatory oversight: Mutual funds are subject to many government regulations that protect investors from fraud.
-: ADVANTAGES CONTD . :
Liquidity: It's easy to get your money out of a mutual fund. Write a check, make a call, and you've got the cash. Convenience: You can usually buy mutual fund shares by mail, phone, or over the Internet. Low cost: Mutual fund expenses are often no more than 1.5 percent of your investment. Expenses for Index Funds are less than that, because index funds are not actively managed. Instead, they automatically buy Stock in companies that are listed on a specific index Transparency Flexibility Choice of schemes Tax Benefits Well regulated
-: DRAWBACKS OF MUTUAL FUNDS :
Mutual funds have their drawbacks and may not be for everyone: 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 encounter fewer risks when they invest in mutual funds than when they buy and sell stocks on their own. However, anyone who invests through a mutual fund runs the risk of losing money. Fees and commissions: All funds charge administrative fees to cover their day-to-day expenses. Some funds also charge sales commissions or "loads" to compensate brokers, financial consultants, or financial planners. Even if you don't use a broker or other financial adviser, you will pay a sales commission if you buy shares in a Load Fund. Taxes: During a typical year, most actively managed mutual funds sell anywhere from 20 to 70 percent of the securities in their portfolios.
-: NET ASSET VALUE
NAV) represents a fund's per share market value. This is the price at which investors buy ("bid price") fund shares from a fund company and sell them ("redemption price") to a fund company. It is derived by dividing the total value of all the cash and securities in a fund's portfolio, less any liabilities, by the number of shares outstanding. An NAV computation is undertaken once at the end of each trading day based on the closing market prices of the portfolio's securities.-: NET ASSET VALUE EXAMPLE:
For example, if a fund has assets of $50 million and liabilities of $10 million, it would have a NAV of $40 million. This number is important to investors, because it is from NAV that the price per unit of a fund is calculated. By dividing the NAV of a fund by the number of outstanding units, you are left with the price per unit. In our example, if the fund had 4 million shares outstanding, the price-pershare value would be $40 million divided by 4 million, which equals $10.
-: MUTUAL FUNDS COMPANIES IN INDIA :* ABN-AMRO * Baroda Pioneer Mutual Fund * Benchmark * Birla Sunlife * Canbank * DBS Chola * Deutsche * DSP Merrill Lynch * Escorts * Fidelity * Franklin Templeton * HDFC * Standard Chartered * HSBC * UTI * ING Vysya * JM Financial * LIC * Morgan Stanley * Principal * Prudential ICICI * Reliance * SBI * Sahara * Sundaram BNP Paribas * Tata
TOP 15 FUNDS - PERIOD (LAST 12 MONTHS)
Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Scheme Name Reliance Gold Exchange Traded Fund - Dividend SBI Gold Exchange Traded Scheme UTI Gold Exchange Traded Fund Kotak Gold ETF Quantum Gold Exchange Traded Fund - Growth Religare Gold Exchange Traded Fund HDFC Gold Exchange Traded Fund Axis Gold ETF GS Gold BeES ICICI Prudential Gold Exchange Traded Fund ICICI Prudential FMCG - Growth Canara Robeco InDiGo Fund - Growth Sahara Short Term Bond Fund - Growth Peerless Short Term Fund - Growth Tata Fixed Income Portfolio Fund - Series C3 - Ret - Growth Date Dec 1 , 2011 Dec 1 , 2011 Dec 1 , 2011 Dec 1 , 2011 Dec 1 , 2011 Dec 1 , 2011 Dec 1 , 2011 Dec 1 , 2011 Dec 1 , 2011 Dec 1 , 2011 Dec 1 , 2011 Dec 1 , 2011 Dec 1 , 2011 Dec 1 , 2011 Dec 1 , 2011 NAV (Rs.) 2757.8452 2887.5654 2833.858 2832.3254 1409.0144 2910.4623 2889.1295 2886.5036 2820.2713 2906.7319 76.7 12.1232 12.5445 11.4931 13.6836
INDIAN MUTUAL FUNDS FUTURE GROWTH FACTS
In the past 6 years, Mutual Funds in India have recorded a growth of 100 %. In India, the rate of saving is 24 %. In the future, there lies a big possibility for the Indian Mutual Funds industry to expand. Quite a lot of asset management companies which are foreign based is now entering the Indian markets. A number of commodity Mutual Funds are introduced now. The SEBI (Securities Exchange Board of India) has approved the permission for it. More emphasis is put on the effective Mutual Funds governance. There is also sufficient scope for the Indian Mutual funds to enter into the semi-urban and rural areas. Financial planners will play a major role in the Mutual Funds market by providing people with proper financial planning.
-: CREATION OF PORTFOLIO :
Set realistic targets based on appropriate benchmarks. Decide on an appropriate investment philosophy i.e whether to capitalize on economic cycles, or to focus on growth sectors or on finding value stocks. Avoid over diversification. Although diversification is major strength is a major strength of mutual fund.
-: PORTFOLIO REVISION :?
Fund managers keep churning their portfolio depending upon their outlook for the market, sector or company. Portfolio revision (depending on changing market outlook and evolving trends). This churning can be done very frequently or may be done after sufficient time gaps. Portfolio revision is done if the fund managers feel in coming months there will be changes in economic scenario or world global market.
?
?
?
THANK YOU
doc_597872379.pptx