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A mutual fund offers investors the opportunity to pool their money with other investors in
an investement that’s managed by professional investement managers mutual fund invest
in stocks ,bonds or other securities according to each funds s objective.which indicate
your contribution to a particular scheme you can purchase or redeem this units as need
as per net assest value .
Usually (NAV) of a mutual fund changes daily according to the underline assests of the
fund.
Mutual fund operates as per the guideline set by security exchange board of india (SEBI)
Mutual fund investement are subject to market risk the investor need to understand and
verified the offer document before investing
In mutual fund two way investment can done lumsump period of investment or
graduation.
A mutual fund is a professionally managed investment fund that pools money from
many investor to perchance securities. Mutual fund has advantage or disadvantage
compared to direct investing in individual securities . the primary advantage s of mutual
funds are that the y provided economics of scale , a higher level of diversification they
provided liquidity , and they managed by [professional investor in mutual fund pay
various fees and expenses.
The mutual fund was born from a financial crisis that staggered euorope in the earlier 1770s
the british east india company has borrowed heavily during the preceding boom years to
support its ambitious colonial interests, particularly in north America where unrest would
culminate in revolution in a few short years.
Against this backdrop , a dutch merchant, andriaan van ketwich, had the foresight to pool
money from a number of subscribes to form an investment trust – the world’s first mutual
fund – in 1774 . the financial risk to the mainly small investors was spread by diversifying
across a number of European countries and the American colonies, where investments were
backed by income from plantations, an early version of today’s mortgage- backed securities.
Mutual fund provides a host of benefits which make them important. Let’s look at the
importance of mutual funds as listed below.
CONVENIENCE
For investors , one of the most prominent benefits that mutual funds provide is convenience .
by investing in a single fund, they can again access to a board range of the financial market.
A typical diversified equality fund can spread out the money across tens of stocks with some
portion invested in fixed income securities as well.
DIVERSIFICATION
Further, if an investor wants to focus on one segment of the market , for instsnce,large-cap
stocks, funds focused on this segments can spread out the investment across multiple large-
cap stocks in just one transaction of purchasing the fund. If the investor were to try to do that
themselves, it would take a lot of effort, transaction cost , and time createon individuals
la+rge-cap stockes portfolio. The situation with investing in bonds is even more difficult if
one tries to do it individually rather than taking the fund routes.
EASE OF INVESTMENT.
Apart from this, mutual funds are easy to buy and sell. One can either engage the services of
a distributor or agent to transacts in funds or do it over the internet themselves. In the case of
latter, the transaction amount is debited from or comes directly to the bank account
depending on whether a fund has been bought or sold.
Although mutual funds can be beneficial in many ways , they are not for everyone.
If you invest in a fund , you give up all control of your portfolio to the mutual fund money
manager who run it.
CAPITAL GAINS.
Anytime you sell stock, you ‘taxed opn your gains . however, in a mutual , you re taxed
when the fund distributes gains . it made from selling individual holding even if you
haven’t sold your shares if the fund has high turnover ,or sells holding often, capital gain
distributions could be an annual event.
Some mutual funds may assess asales charge on all purchases also known as a load this is
what it costs to get into the fund the expenses ratio is expressed as a percentage and is
what you pay annually as a portion of your account value . the average for managed funds
is around 1.5% alternative , index funds charge much lower expenses (0.25% on average )
because they are not actively managed. Since the expenses ratio will eat into gains on an
annual basis, closely compare expenses ratio for different fund.
OVER- DIVERSIFICATION.
Although there are many benefits of diversification , there are pitalls of being over-
diversified. Think of it like a sliding scale. The more securities you hold, the less likely you
are to feel their individual return on your overall portfolio. What this means is that
throught risk will be reduced , so too will the potential for gains. This may be an understood
trade – off with diversification but too much diversification can negate the reason you want
market exposure in the first place.
CASH DRAG
Mutual funds need to maintain assest in cash to satisfy investor redemptions and to maintain
liquidity for purchases. However, investor s still pay to have funds sitting in cash because
annual expenses are assessed on all fund assests ,regardless of whether they invested or not.
FUNDS
Mutual funds provide a host of benefits which make them important lets look at the
important point .
CONVENIENCE:
For investors, one of the most prominent benefits that mutual funds provide is convenience .
by investing in a single fund, they can gain access to a broad range of the financial market. A
typical diversified equality fund can spread out the money across tens of stocks with some
portion invested in fixed income securities as well.
EASE OF INVESTMENT.
Apart from this , mutual funds are easy to buy and sell . one either engage the services of a
distributor or agent to transact in funds or do it over the internet themselves. In the case of
latter, the transaction amount is debited from or comes directly to the bank account linked to
the mutual fund account depending on whether a fund has been bought or sold.
PROFESSIONAL MANAGEMENT:
This is one of the factors, which is a key highlight of the importance of mutual funds. Due to
lack of expertise several investors don’t have the confidence in taking the financial market
route to grow their wealth . they feel they have limited or no capability to invest in stocks and
bonds on their own and do not have the time to keep tracking their investments even if they
manage to invest on their own.
Mutual funds take care of this issue by providing the expertise of the fund manager and their
team of analysts, which perform the analysis of financial markets and instruments on a daily
basis. They charge a fee for their professional services, which are bundled into the expense
ratio of a mutual fund.
Some fund managers also invest in the same fund(s) that they manage , thus making them
accountable for their performance; they have a stake in the fund doing well . this expertise
and experience in money management make mutual funds a great vehicle for investors.
This assumes a lot of importance for investors as by investing minimal time and energy, they
can add a variety of instruments to their investment portfolio.
These funds invest in short-term fixed income securities such as government bonds, treasury
bills, bankers, acceptances, commercial paper and certificates of deposit . they are generally a
safer investment, but with a lower potential return then other types of $ 10 per security .
These funds buy investments that pay a fixed rate of return like government bonds,
investment-grade corporate bonds and high-yield corporate bonds. They aim to have money
coming into the fund on a regular basis, mostly throught interest that the fund earns. High-
yield corporate bond funds are generally riskier than funds that hold government and
investment- grade bonds.
EQUITY FUNDS.
These funds invest in stocks. These funds aim to grow faster than money market or fixed
income funds, so there is usually a higher risk that you could lose money. You can choose
from different types of equality funds including those that specialize in growth stocks (which
don’t usually pay dividends), income funds (which hold stocks that pay large dividends ,
value stocks, large –cap stocks, mid- cap stocks ,small-cap stocks, or combination of these.
BALANCED FUNDS.
This funds invest in a mix of equityies and fixed income securities . they try to balanced the
aim of achieving the higher return
INDEX FUNDS.
This funds aim to track the performance of a specific intex such has the s&p composite index
the value of the mutual fund will go up or down as the index goes up or down. Index fund
typically have lower costs then actively managed mutual fund because the portfolio manager
doest have to do as much rearch or make aa many investment decisions
SPECIALITY FUNDS.
This funds focus on specialized mandates such as real eestated , commodities or socially
responsible .for eg a socially responsible fund invest in company that support in one mental
stewaradship, human rights ,diversity, and may avoid companies involved in alcohol, tobacco
,gambling , weapons, and the military .
This funds invest in other funds smililar to balanced funds, they try to make asset allocation
and diversification easier for the investor. The MER for fund - of – funds tend to be higher
than stand - alone mutual funds.
TOP – DOWN APPROACH.: looks at the big economic picture, and then finds industry or
countries that look like they are going to do well. Then invest in specific companies with in
choosen industry od country
Focuses on selecting specific companies that are doing well no matter what the prospests are
for there for there industry or the economy.
TECHNICL ANALYSIS –
Attempt s to forecast the direction of investment prices that studying past market data. You
can
learn about a funds”s investment strategy by readings it FUND FACTS and smppilfied.
Prospectus.
If you are planning to start investing in mutual fund , here a complete guide.
TO start ivesting in a fund scheme you need a PAN, bank account and KYC(know your
client) compliant. The banks account should be in the name of the investor the magnatic ink
character recognitions (MICR) AND INDIAN FINANCIAL SYSTEM CODE (IFSC) details
are mentioned on every cheque leaf and it is common for and agent or distributor seek a
cancelled back cheque leaf
The need for KYC is to comply with the market redulator SBEI in accordance with the
prevention of money lendering act , 2002(“PMLA”), which underpgo changes from time to
time.
KYC process is investor friendly and is uniformed across various SEBI regulated
intermedaires in the security market such as mutual funds , portfolio manager depository
participates, stock borker venture capital funds collective investments schemes and other this
way ,a singleKYC aluminates duplication of the KYC process across this intermediaries and
makes investing more friendly
Proof of identitied such as copy of pan card UIN(adhar) or a passport or voter ID or diving
licience.
Proof of address passport or diving licinesee or ration card register lease \sale agreement of
residence all latest bank A/C statement or passbook or lastest telephone bill(only landline) or
latest electricity bill or latest gas bill which are not older than there month.
If will need to submitted copies of all this documents by self that attesting them along with
orginals . in case the original of any document is not produced for verification, then the
copies should properly attestes by entities authorized for attesting the document in case your
useable to furnished proper document, it could result in delays in getting a KYC.
Established in 1994, Aditya Birla Sun Life Mutual Fund (ABSLMF), is co-sponsored
by Aditya Birla Capital Limited (ABCL) and Sun Life (India) AMC Investments Inc.
Having total domestic assets under management (AUM) of close to Rs.2423 billion
for the quarter ended December 31st, 2018, ABSLMF is one of the leading Fund
Houses in India based on domestic average AUM as published by the Association of
Mutual Funds of India (AMFI). ABSLMF has an impressive mix of reach, a wide
range of product offerings across equity, debt, balanced as well as structured asset
classes and sound investment performance, and around 6.8 million investor folios as
of December 31st, 2018.
ditya Birla Capital Limited (ABCL), is the financial services platform of the Aditya
Birla Group. With a strong presence across the life insurance, asset management,
private equity, corporate lending, structured finance, project finance, general
insurance broking, wealth management, equity, currency and commodity broking,
online personal finance management, housing finance, pension fund management
and health insurance business, ABCL is committed to serving the end-to-end
financial services needs of its retail and corporate customers. Anchored by more
than 17,000 employees, ABCL has a nationwide reach and more than 2,00,000
agents / channel partner.
investment Objective
Investment objective is to save tax while growing your money through Equity
Invesments
Investments in equity and equity related securities, with tax benefit under
section 80C, subject to eligibility
Fund Details
Fund Type - Open-Ended
Class - Equity
Category - ELSS
Fund Performance
How to Invest in
ABSLMF?
Whether you are a seasoned investor or a novice
in this area, investing in ABSLMF is made very
simple with ClearTax. You can visit ClearTax to
pick from a diverse list of handpicked funds that
are designed keeping in mind the risk profile and
investment objective of investors. You can be
assured of a hassle-free quick process of selecting
any product from your favorite fund house –
ABSLMF, with Cleartax. This requires just
one KYC formality that will take not more than 7
minutes of your time. ClearTax makes investing
simple for you.
The process is very simple on ClearTax.
Step 1: Select the fund(s) and the amount you
want to invest every month
Step 2: Provide your details
Step 3: Make payment and you are done
Process and documents
required to invest in
ABSLMF via ClearTax
Money laundering and corruption can cripple the
economy and the stability of our country. Here,
Know Your Customer (KYC) and In-Person
Verification (IPV) can help a financial institution
significantly. However, ClearTax doesn’t believe in
inconveniencing their investors. So they have
enabled a way to do KYC in a quick and simple
way. What’s more, if investing via ClearTax Save,
the investor needs to do it only once for their first
investment.
KYC is necessary for all fund houses. If you are
investing through ClearTax, you need to do your
KYC just once. The same KYC will be used for all
your future investments.
KYC verification through ClearTax is a very simple
process.
. Using OTP sent to your Aadhaar-registered
mobile number OR
ii. By uploading photos/scans of the required
documents
ID Proofs: You can submit Xerox copy of PAN
Card, Passport, Aadhaar Card, Voter ID or Driving
License. Other central government approved
documents like NREGA job card are also
accepted.
Residential proofs: You can submit the same ID
proof (except PAN) if the address on it is your
current residential address. Rental/lease
agreement, most utility bill, and ration card can
also serve the purpose. If your permanent address
and correspondence address is not the same, then
submit proof for both.
5. ABSLMF: Equity
ABSLMF Equity Funds are medium to high-risk
funds invested in stocks and equities that offer
investors dynamic returns on their investments.
The schemes are designed for long term capital
appreciation and are curated to meet investment
needs based on individual risk appetite.
EQUITY
Scheme Name Risk 5 year Fund Objective
return
(%)
Aditya Birla Sun Life Moderately 16.35 The scheme aims at achieving long term growth of capital b
Frontline Equity high across various industries in line with the benchmark index
Fund the fund’s assets in equity and equity related securities
Aditya Birla Sun Life Moderately 16.34 The scheme attempts to generate capital appreciation in th
Equity Hybrid ’95 high equity, fixed-income and money market securities. The fun
Fund distribution of dividend. Investors who are eager to take ex
investing in this.
Aditya Birla Sun Life Moderately 21.55 It is an open-ended scheme which maintains a portfolio of
Equity Fund high large cap, mid cap, small cap stocks. The scheme aims to ac
allocating 90% of the fund’s assets in equity and equity-rel
securities.
Aditya Birla Sun Life Moderately 21.81 Being an open-ended growth scheme, it generates capital a
Advantage Fund high equity and equity related securities and maintaining a dive
earning returns is leveraging on the dynamic business cycle
Aditya Birla Sun Life Moderately 16.90 Being an open-ended fund, the scheme aims to achieve ca
Focused Equity high large-cap equity shares of up to 30 companies. The scheme
Fund equity and equity-related securities in the form of a concen
Aditya Moderately 16.35 The scheme aims at achieving long term growth of capital by maintai
Birla Sun high diversified across various industries in line with the benchmark index
Life allocates 100% of the fund’s assets in equity and equity related secur
Frontline
Equity
Fund
Aditya Moderately 16.34 The scheme attempts to generate capital appreciation in the long ter
Birla Sun high investing in equity, fixed-income and money market securities. The fu
Life Equity generation and distribution of dividend. Investors who are eager to ta
Hybrid ’95 hint of debt may consider investing in this.
Fund
Aditya Moderately 21.81 Being an open-ended growth scheme, it generates capital appreciatio
Birla Sun high investments in equity and equity related securities and maintaining a
Life approach. The basis of earning returns is leveraging on the dynamic b
Advantag fundamental research approach.
e Fund
ABSLMF: Equity
ABSLMF Equity Funds are medium to high-risk
funds invested in stocks and equities that offer
investors dynamic returns on their investments.
The schemes are designed for long term capital
appreciation and are curated to meet investment
needs based on individual risk appetite.
EQUITY
Aditya Birla Sun Moderately 21.89 It is an open-ended ELSS Scheme which has a lock-in period of
Life Tax Relief high benefit under section 80C of the Income Tax Act. The scheme
96 enable capital appreciation through investment in equity and
Aditya Birla Sun Moderate 9.14 It is an open ended scheme which aims to invest in a
Life Treasury mix of high quality corporate bonds and G Secs issued
Optimizer Fund by Banks, Public Sector Undertakings and Public
Financial Institutions in India to generate reasonable
returns and liquidity over the short run. By
maintaining a diversified portfolio, the fund manager
aims at keeping the portfolio risk at reasonably low
levels.
Aditya Birla Sun Moderate 9.12 It is an Open ended debt scheme which invests in a
Life Medium Term mix of debt and money market instruments in order
Plan to generate regular income. The income thus
generated is distributed among the unitholders by
means of regular dividend payments over the medium
term.
Aditya Birla Sun Moderately 8.62 It is an open-ended debt scheme which invests in debt
Life Savings Fund Low and money market instruments to provide reasonable
returns and investment liquidity during the short run.
The fund manager follows a conservative strategy
which emphasises on higher post-tax returns along
with liquidity as one of its key drivers.
Aditya Birla Sun Moderate 8.55 It is an open-ended debt scheme which invests in a
Life Short Term mix of debt and money market instruments to
Opportunities generate income with capital growth during the short
Fund run. The fund manager focuses on delivering higher
returns by identifying and selectively investing in
mispriced credit opportunities in the market. The fund
generates income by way of interest accrued on
higher yielding investment grade bonds.
Aditya Birla Sun Moderately 8.55 It is an open-ended debt scheme which invests in in
Life Floating Rate Low different types of floating rate debt and money
Fund – Long Term market instruments to generate income with capital
Plan appreciation during the short run. Those who need to
leverage from rising interest rates over medium to
longer term may go for this. The fund manager may
allocate some part of fund’s assets in fixed rate debt
securities too.
8. ABSLMF : Hybrid
Funds
The ABSLMF Hybrid Funds are aimed at
delivering risk adjusted returns by means of
investing in a combination of fixed income
instruments and equities. It optimizes the
advantage of pairing the growth potential of
equities with the relative stability that is offered by
income investments.
Scheme Name Risk 5 year return (%) Fund Objective
Aditya Birla Moderately 2.06 It is an open-ended fund of funds scheme which invests excl
Sun Life high Gold ETF which in turn, invests in physical gold of 99.5% p
Gold Fund comfortable with bearing moderately high risk may go for th
9. About ABSLMF
Established in 1994, Aditya Birla Sun Life Mutual
Fund (formerly known as Birla Sun Life Mutual
Fund), is a joint venture between the Aditya Birla
Group and the Sun Life Financial Inc. of Canada.
The joint venture blends the experience of Aditya
Birla Group in the Indian market and the global
experience of Sun Life.
ABSLMF is co-sponsored by Sun Life (India) AMC
Investments Inc and Aditya Birla Capital Limited
(ABCL). It has a far reaching network of 150
branches and other distribution channels in India.
ABSLMF endeavours towards increasing the
reach and depth of mutual funds in the country. It
is relentlessly functioning to make mutual funds a
viable proposition across a wider set of investors
and advisors across India.
Among its various efforts includes user-friendly
services, smart solutions and conveniences which
makes mutual fund processes simple for both
investors as well as distribution partners. ABSLMF
provides variety of schemes like debt and treasury
products, sector specific equity schemes, hybrid
and monthly income funds, fund of fund schemes
and offshore funds.
Aditya Birla Capital Limited (ABCL) is the holding
company of all the financial services businesses of
the Aditya Birla Group. It is committed to serving
the end-to-end financial services needs of its retail
and corporate customers across the life insurance,
private equity, asset management, structured
finance, project finance, corporate lending, general
insurance broking, equity, currency, wealth
management, and commodity broking, housing
finance, pension fund management, online
personal finance management, and health
insurance business.
Opportunities Followin
Analysis
1. Grow
2
The thre
as menti
1. Econo
Threats 2. Entry
The thre
as menti
1. Econo
Threats 2. Entry
CIO N.A
Compliance
Ms. Hemanti Wadhwa
Officer
Investor Service
Ms. Keerti Gupta
Officer
Literature review.
...
The mutual funds in India have always been thumping
their chest about how transparent their dealings are.
Here is an example to the contrary. I switched between
two funds in Birla Sunlife and the AMC took all of
seven days to allot units in the fund I switched into.
Even considering the fact that the fund I switched out
of is an international fund, I found it very difficult to
digest that it takes seven business days, in this era of
online trading, wire transfers, internet and RTGS, to
realise funds from sale of securities.
Should I shift from Aditya Birla Sun Life Small Cap Fund to a
mid cap mutual fund
have been investing Rs 3,000 per month in Aditya Birla
Sun Life Small Cap Fund since November 2017 with the
help of an agent. I have two questions: One, I have
researched and found out that mid cap schemes are
better than small cap schemes; can I shift to a mid cap
scheme? Two,can I get rid of the agent and continue with
the investment without his help? If yes, how?
-Hirabmay Hota.
...
There are no good or bad mutual fund categories. Every
mutual fund category is meant for different kind of investor.
Mid cap schemes are good for aggressive investors who want
to create corpus for their long-term financial goals. Small cap
schemes are good for extra aggressive investors who are
ready to take a lot of risk to earn extra returns and create
funds for their long-term goals. Both mid cap and small cap
schemes are recommended to aggressive investors who can
stomach lot of risk and volume.
d. Liquid Funds
Liquid funds invest in debt instruments with a
maturity of not more than 91 days. This makes
them almost risk-free. Rarely have liquid funds
seen negative returns. These funds are better
alternatives to savings bank accounts as they
provide similar liquidity with higher returns. Many
mutual fund companies offer instant redemption on
liquid fund investments through special debt cards.
Gilt Funds
Gilt Funds invest in only government securities –
high-rated securities with a very low credit risk. It’s
because the government seldom defaults on the
loan it takes in the form of debt instruments. This
makes gilt funds ideal for risk-averse fixed income
investors.
LOCATION. GURAGOA
...
Birla Sun Life Tax Relief 96 (An Open Ended Equity
Linked Savings Scheme(ELSS) with a secure of 3
years) This item I chose on the grounds that it gives
long haul capital development and does interests in
value and value related securities, with tax break
under segment 80C. The SIP accomplished for recent
years have given normal return of 15 to 18% band.
The NAV upgrades and articulations are sent month to
month. This prescribed for assessment arranging and
for long haul riches creation. A SIP of as little as
Rs.500 can be effectively done every month. The store
chief has great reputation 7 Birla is put stock in brand
in Mutual reserve industry.
CH NO 3 RESERCH METHODOLOGY.
CASE DESCRIPTION
Birla Sun Life Asset Management Company (BSL AMC) has been
one of the most successful companies operating in the Indian
mutual fund space. However, contrary to most of the industry
players and the prima facie trend, BSL AMC focussed on debt
funds to drive its success story. Interestingly the incumbent
Chief Executive Officer, Balasubramanian, has been with the
company since 1994 with a significant exposure to the
Investments function.
“Till 1999, the journey was very good. We were the number 1
equity fund and the number 1 debt fund also. But post-1999,
after technology bubble collapse, as an organisation we did go
through some issues. It was in 2006 when I was given the
responsibility of the entire investment team. Till 2006, we
couldn’t settle either in investment-side or in the CEO’s position
and in 2008-2009, we incurred loss. Then from organization
point of view – I think probably the Chairman Mr. Birla Ajay
Srinivasan (CEO of ABFSG) and Mr. Pankaj Razdan (Deputy CEO,
ABFSG) thought that let’s make Bala [affectionately
for Balasubramanian] as the CEO of the company. That was
2009. When I took charge I think the assets should have been
somewhere around 40,000 crores and today we are about 1
lakh crores,”
OBJECTIVE OF STUDY
The objective of study is that investor can know all the return
was given in the mutual fund the know all very well study of
share and use some basic idealogy to good investment or
return was given to that amount.
C summary of