Mutual Funds & Euro

By Group 4

OUR PORTFOLIO
Out of Rs. 10,00,000 specified, we wish to invest Rs. 9,46,200 on Euro Currency. And we kept Rs.53,800/- as ideal cash. The reasons and details of our investments are enumerated in the following slides.

What are Mutual Funds?

Mutual Fund is a trust which pool the savings of large number of investors and then reinvests those funds in equities , bonds, debentures for earning profits and then distribute the dividend among the investors. In return for such services, Asset Management Companies charge small fees.

Net Asset Value

NAV means Net Asset Value. The investments made by a Mutual Fund are marked to market on daily basis. NAV is arrived at after deducting all liabilities (except unit capital) of the fund from the realisable value of all assets and dividing by number of units outstanding. Therefore, NAV on a particular day reflects the realisable value that the investor will get for each unit if the scheme is liquidated on that date. This NAV keeps on changing with the changes in the market rates of equity and bond markets.

History of Indian MF Industry

The MF industry in India started in 1963 with the formation of UTI at the initiative of GOI & RBI. History of MF in India can be divided into 4 distinct phases.

1st Phase (1964-1987)

Unit Trust of India UTI was established in 1963 by an act of parliament & was set up by RBI. UTI functioned under the regulatory & administrative control of RBI The 1st scheme launched by UTI was unit scheme 1964 In 1978 UTI was de-linked from RBI & IDBI took over its control By the end of 1988 UTI had Rs.6700 Crores of assets under management

2nd Phase(1987-1993)
SBI mutual fund is the first non UTI mutual fund established in june 1987 1987 marked the entry of non UTI, public sector mutual funds set up by public sector banks, LIC,GIC

3rd phase (1993-2003)

With the entry of private sector funds in 1993, a new era started In the Indian MF industry, giving the indian investors a wider choice of fund families. 1993, Was the year in which MF regulations came into effect, under which all MFs except UTI were to be registered & governed by SEBI.

th 4

phase

In feb 2003 following the repeal of UTI act 1996, UTI was divided into two separate entities. One is the specified undertaking of UTI with assets under management of Rs. 29,835 Cr as at the end of jan 2003, & is governed by GOI. The second is UTI MF LTD, sponsored by SBI, PNB,BOB & LIC. It is registered with SEBI & functions under MF regulations.

Mutual Funds
By Maturity Period By Investment objective

Open Ended Close Ended

Equity/growth Balanced fund Guilt fund Income/debt Money market Index fund Tax saving schemes

Open ended funds

Open ended Schemes are those schemes where investors can redeem & buy new units all through out the year as per their convience at NAV related prices

Close ended fund

Close ended Schemes has a stipulated maturity period e.g 5-7 years. The fund is open for subscription only during a specified period at the time of launch of the scheme. Investors can invest in the scheme at the time of IPO there after they can buy or sell units of the scheme in stock exchanges.

Balanced fund:
The aim of balanced fund is to provide both growth & regular income as such schemes invest in both equities & fixed income securities. These are appropriate for investors looking for moderate growth.

Growth / Equity oriented scheme:

The aim of the growth fund is to provide capital appreciation over medium or long term investments. Such funds have comparatively high risks. These schemes provide investors different options like dividend option, capital appreciation etc.

ICICI Prudential Balanced Fund(G)

Performance

Performance for the last 5 years- ICICI MF

TATA Balanced Fund(G)

Investment Info
Investment Objective The investment objective of the scheme is to provide income distribution and or medium to long term capital gains while at all times emphasising the importance of capital appreciation.

Portfolio

performance

Performance for the last 5 years-TATA MF

Is investment in Euro Profitable??

Why to Invest in EURO?

Investment
On 29th july Euros bought = 12,000 Cost price of 1 Euro = Rs. 78.85 Investment = 9,46,200/Cash in hand= 53,800/On 1st August Euros sold = 12,000 Selling price of 1 Euro = Rs.80.003/Profit = Rs. 13,836/-

THANK YOU!