Mf industries
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This document discusses mutual funds in India. It provides insights into mutual fund performance in current markets and analyzes comparative studies between leading mutual funds. It evaluates consumer feedback and awareness of mutual funds among different investor groups. The document outlines various financial markets and defines mutual funds as professionally managed collective investment schemes that pool money from investors to buy securities. It notes that India has over 34 players and more than 1150 mutual fund schemes, with assets under management growing significantly in recent years. The top performing large cap funds are identified as Fidelity Equity, Franklin India Blue Chip, and ICICI Focused Blue Chip Equity. Challenges and opportunities for future mutual fund growth in India are also discussed.
Mf industries
- 2. Aparna Kumar 08 Madhurima Gupta 30 Yash Jejani 34 Namrata Joshi 36 Bhagyashree Kedia 39 Richa Khaneja 42 Heera Lenka 47
- 3. • To get insight knowledge about Mutual Funds • To know the mutual fund performance in the present markets • To analyze the comparative study between other leading mutual funds in the present markets • To know the awareness of mutual funds among different groups of investors • To evaluate consumer feedback on Mutual Funds.
- 4. Financial markets Commodity markets Capital markets Security markets Primary /New issue market Secondary market Long term loans /bonds Money markets Forex market
- 5. • 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 other securities.
- 7. • INDIA - one of the fastest growing markets. • Major factor contributing to the success is the booming stock market with optimistic economy. • An other factor is the favorable regime enforced by SEBI. • It is growing despite global crisis (2008) • AUM has grown from Rs 3 lakh crore in Sept 06 to Rs 7 lakh crore in Sept 11.
- 8. • Above 34 players and more than 1150 schemes. • Heavy outflows triggered by market volatility. • Partnering of AMC’s with banks to increase the strength of distribution networks. • A sharp fall in investment in equity based funds. • Huge outflow of funds around 40 % of retail investors exited from equity funds.
- 9. • While Traditional products dominate in India, new products like Exchange Traded Funds (ETFs), Gold ETFs, Capital Protection and Overseas Funds have been gaining popularity. • Systematic Investment Plan (SIP) has emerged as a suitable solution in this case, with a fixed amount invested at regular intervals, and most importantly being low risk. • Emergence of FMPs.
- 16. 1)Liquidity 2)Transparancy 3)Affordability 4)Diversification 5)Government support by way of tax concessions 6)Volatility of bank interest
- 17. 1)Poor participation of retail investors 2)Distribution is confined only to metro cities 3) Cost pressures 4) Lack of financial literacy
- 18. 1)Huge untapped market. 2)High level of savings among people. 3)Using on online mode of trading system. 4)Fund houses should emphasize on off shore segment.
- 19. 1)Increasing competition. 2)High level of volatility in stock market. 3)Possibility of more stringent regulations by SEBI, RBI, AMFI in future.
- 21. Name of the Companies Reliance Birla Sunlife State bank of India(SBI) HSBC Tata Edelweiss HDFC JP Morgan ABN Amro Kotak Mahindra bank AIG JM financial Bank of Baroda Goldman Sachs Canara bank UTI(Unit Trust of India) ICICI Standard Chartard DBS Cholamandalam AMC Fidelity DSP Merrill lynch Franklin Templeton
- 22. Top Performing Schemes Large Cap Fidelity Equity Fund Franklin India Blue Chip ICICI Pru Focused Blue Chip Equity UTI opportuanities Fund Mid and Small Cap Birla Sun Life MNC fund HDFC mid cap IDFC premier equity SBI Magnum Emerging business
- 23. Analysis of some top performing MF’s
- 24. Investment type = General Equity Fund Category = Large Cap Fund Type = Open Ended Asset Size = 4261.77 cr Minimum investment = Rs. 5000 Exit Load = 1 % Crisil Rank = 1 Fund Manager = Anand Radhakrishnan Franklin India Blue-chip Fund
- 25. Sector Wise Allocation Sector % -- 1-Year -- High Low Banking/ Finance 17.25 19.83 17.12 Technology 13.70 13.70 8.42 Oil & Gas 11.12 13.10 9.63 Telecom 9.76 11.25 9.04 Utilities 8.50 8.55 6.56 Pharmaceutical 7.17 7.17 3.15
- 26. Asset Allocation (%) (Dec 30, 11) Equity 93.28 Others 0.00 Debt 0.03 Mutual Funds N.A Money Market 0.00 Cash / Call 6.69
- 27. Investment type = General Equity Fund Category = Large Cap Fund Type = Open Ended Asset Size = 3,370.77 crs. Minimum Investment = Rs.5000 Exit Load = 1% Crisil Rank = Rank 1 Fund mamager = Sandeep Kothari / Subramanian Balakrishnan Fidelity Equity Fund
- 28. Asset Allocation (%) (Oct 31, 11) Equity 89.90 Others 0.71 Debt 0.00 Mutual Funds 0.86 Money Market 0.00 Cash / Call 8.53 Asset Allocation
- 29. Customer friendly Researched Fund Possibilities Should help the buyers with investment and taxation basics of mutual funds Should have a BMO investment professional to guide which scheme to be selected Should be well balanced Should yeild good returns Essentials for a good scheme
- 31. Inception Date – June 30th 2000 Trustee – HDFC Trustee Company Ltd. Top Performing Schemes – AUM as on 30th April 11 + HDFC Top 200 (2338 cr) + HDFC Equity (2759.30 cr) + HDFC MIP Long-term (887.90 cr) 1. HDFC Mutual Fund
- 32. Inception Date – June 30th 1995 Trustee – Tata Trustee Company Pvt. Ltd. Top Performing Schemes – AUM as on 30th April 11 + Tata Pure Equity (269.95 cr) + Tata Index Nifty (6.77 cr) + Tata Short-term Bond (292.08 cr) 2.Tata Mutual Fund
- 33. Inception Date – June 29th 1987 Trustee – SBI Mutual Fund Trustee Company Pvt. Ltd. Top Performing Schemes – AUM as on 30th April 11 + Magnum Contra (1,958.50 cr) + Magnum Balanced (333.11 cr) + Magnum Multiplier Plus (687.15 cr) 3. SBI Mutual Fund
- 34. Inception Date - June 30th 1995 Trustee – Reliance Capital Trustee Company Ltd. Top Performing Schemes – AUM as on 30th April 11 + Reliance MIP (168.52 cr) + Reliance Banking Retail (681.25 cr) + Reliance Diversified Power Sector Fund (3809.57 cr) 4. Reliance Mutual Fund
- 35. Inception Date – December 16th 1996 Trustee – DSP Merrill Lynch Trustee Company Pvt. Ltd. Top Performing Schemes – AUM as on 30th April 11 + DSPBR top 100 Equity (1167.08 cr) + DSPBR Equity (919.77 cr) + DSPBR GSF Longer Duration (425.67 cr) 5. DSP BlackRock Mutual Fund
- 36. Research design: The Research Design used here is Descriptive Research Design Primary data collected through Personal Interviews and Questionnaire Secondary data collected through Internet and Web Search
- 37. 1)Of the following what at present are your investment needs: • To build a corpus for retirement • To save for children education/marriage • To provide for medical emergencies • To provide for family financial security • To create wealth • All of the above 2)Which of the following you think as investment for tax-saving? • Mutual funds • Fixed Deposit • Insurance • PPF • All of the above
- 38. 3) If you had Rs.1000, where you prefer to invest? • Mutual Fund • Fixed Deposit • Direct Equity • Life Insurance • Postal Office Deposit 4) Do you think Mutual Funds are a risky Investment Option? • Yes • No 5) On whose advise do you select a Mutual Fund Scheme? • Personal Decision • Financial Planner’s advise • Broker’s Advice • Friends & Family • Media
- 39. 0 5 10 15 20 25 30 EMPLOYEE STUDENTS BUSINESS OTHERS OCCUPATION
- 40. InvestmentNeeds To builda Corpus for Retirement To save for Children Education/Marriage To providefor medical emergencies To create wealth Allof above
- 43. Fianancial Planer Broker's advise Friends & Family Media Personal Decision 11 9 4 5 21
- 44. • Rising Disposable Income and Savings. • Investment in Banks are no longer attractive. • Increase in number of educated white collar employees. • Foreign based asset management companies are entering India. • SEBI has allowed introduction of Commodity Mutual Funds.
- 45. • Mutual Funds industry is penetrating into rural & semi urban areas. • Growth Rate of MF was 100% in the last 6 yrs & is expected to grow even more. • It has been predicted that by March-end of 2012, the MF Industry of India will reach Rs 99,90,000 crore, taking into account the total assets of the Indian commercial banks . • Product innovation • Distribution channel innovation • Quality Financial Planning
- 46. • KPMG in India is of the view that the Indian mutual fund industry may grow at the rate of 22 to 25 percent in the period from 2010 to 2015. • AUMs will grow at 15% to 25% between 2010-2015.
Editor's Notes
- #7: Net Asset Value (NAV)Net Asset Value is the market value of the assets of the scheme minus its liabilities. The per unit NAV is the net asset value of the scheme divided by the number of units outstanding on the Valuation Date.AMC: asset management company is an investment management firm that invests the pooled funds of retail investors in securities
- #10: 176.7%, while AUM of ‘FOF Overseas’ dropped the most with 12.2%. The financial yearend AUM of the industry forMarch 2011 stood at Rs. 5.92 lakhcrore, down from Rs. 6.13 lakhcrore in March 2010.Markets during the financial year forced the investors to opt.for other alternate asset classes like gold and silver. Maximum growth was observed in AUM of Gold ETFs .as well as spiked yields on the long term debt side
- #19: -Fund houses shud specifically target foreign institutions ,n hnis n nris who want to invest in d indian market. - roping foreign partners can help propel increase distribution.- To channelise their savings and bring abt financial inclusion