MUTUAL FUNDS ANALYSIS

CERTIFICATE
COURSE
BY DFM INSTITUTE
COURSE CURRICULUM

 BASICS OF MUTUAL FUNDS

 CATEGORIES OF MUTUAL FUNDS
 COMPOSITION OF MUTUAL FUNDS
 HOW DO FUND MANAGER WORKS?
 TECHNICAL PARAMETERS TO ANALYSE ANY FUND
PERFORMANCE
 HOW TO BUILD PORTFOLIO IN MUTUAL FUNDS?
 SECRETS ABOUT MUTUAL FUNDS INVESTING
 INVESTORS MINDSET
ON
INVESTMENT OF MONEY
 SENSEX CHART
45000

40000

35000

30000

INVESTOR SAID, SIR

25000
DONALD TRUMP JITNE
28000 WALE HAIN LAGTA
20000
BAZAAR NICHEY
15000
JAYEGA

10000

5000

TIME PERIOD
 SENSEX CHART
45000

40000

35000

30000

DAY
25000

20000
26000
OF
DEMONETISATION
15000

10000

5000

TIME PERIOD
 SENSEX CHART
45000

40000

35000

30000

25000 AFTER DECEMBER

2016 – NOW
20000
26000 BUDGET WORRIES –
15000 LTCG TAXATION
10000

5000

TIME PERIOD
 SENSEX CHART
45000

40000

35000

30000

25000
FEB 2017- AFTER
20000 27500 BUDGET – UP
ELECTIONS TENSION
15000

10000

5000

TIME PERIOD
 SENSEX CHART
45000

40000

35000

30000

25000
APRIL 2017 – AFTER
20000
29300 UP ELECTIONS – RBI
NEW GOVERNOR’S
15000
POLICY WORRIES
10000

5000

TIME PERIOD
 SENSEX CHART
45000

40000

35000

30000

25000
MAY 2017 – AFTER
30200
20000
GOVERNOR’S FIRST
CREDIT POLICY – NOW
15000
MONSSON WORRIES
10000

5000

TIME PERIOD
 SENSEX CHART
45000

40000

35000

30000

25000 32672 AUGUST 2017 –

AFTER GREAT
MONSSON – NOW
20000

15000 GST WORRIES

10000

5000

TIME PERIOD
 SENSEX CHART
45000

40000

35000

30000

25000
33200 NOVEMBER 2017 –
GST ALREADY
IMPLEMENTED –
20000

15000 NOW GUJARAT DEC

ELECTION WORRIES
10000

5000

TIME PERIOD
 SENSEX CHART
45000

40000

35000

30000

34056
25000

20000
DECEMBER 2017- BJP
15000
WON IN GUJARAT

10000

5000

TIME PERIOD
 WHAT TYPE OF INVESTOR YOU
ARE?
ACTIVE INVESTOR
 WHAT TYPE OF INVESTOR YOU
ARE?
PASSIVE INVESTOR
 WHAT TYPE OF INVESTOR YOU
ARE?
 Are you a Risk Taker?
 Are you a Risk Averse?
 Are you a Risk Neutral?
MUTUAL FUNDS
 A MUTUAL FUND IS TYPE OF
ORGANISATION WHICH WOULD
COLLECT MONEY FROM INVESTORS ,
WOULD CREATE A POOL OF FUNDS
AND THIS POOL OF FUNDS WILL BE
INVESTED IN DIFFERENT INVESTMENT
OPPORTUNITES.
 POSITIVE SIDE :
 THEY HAVE INVESTED IN DIFFERENT AVENUES AND
MUTUAL FUNDS WILL EARN INCOME FROM THAT
INVESTMENT

 INCOME RECEIVED COULD BE IN A FORM OF DIVIDEND,

CAPITAL APPRECIATION ( GAINS BETWEEM COST PRICE &
SELLING PRICE)

 THEY WLL DISTRIBUTE THIS INCOME TO THE INVESTORS.

 PROFESSIONAL
FUND MANAGER

EXPENSE RATIO
• An expense ratio is the amount
companies charge investors to
manage a mutual fund
• The expense ratio represents all of
the management fees and operating
costs of the fund
• Expense Ratio 1-2%
MUTUAL FUNDS
 LOAD FUND
 Load Fund is a Mutual Fund that comes with a sales charge or commission.
 Fund Investor pays the load which goes to compensate a sales intermediary, such as
Broker, Financial Planner or Investment Advisor

TYPES OF
LOAD

ENTRY EXIT
LOAD LOAD
TYPES OF MUTUAL FUNDS
 EQUITY MUTUAL FUNDS – Investment in Stock Market

 DEBT MUTUAL FUNDS – Investment is Debt Instruments. Like Commercial

Paper, Government Treasury , Bonds, Etc.

 HYBRID MUTUAL FUNDS – Investment in Equity or in Debt

 SOLUTION ORIENTED FUNDS - Like Child Education Fund, Child Marriage –

You want a solution after some time frame for which you had invest. When that
time arrives you can withdraw your money
 OTHER MUTUAL FUNDS – Investment in Sensex/ Nifty
MUTUAL FUNDS
 NET ASSET VALUE ( NAV)

 It is nothing but a value of a single unit in a Mutual Fund.

 Like you have a price for each share of a company so
same you have a price for a single unit of Mutual Fund
 NET ASSET VALUE ( NAV)

 Net asset value (NAV) represents a fund's per share market value.
It 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.
 A NAV computation is undertaken once at the end of each
trading day based on the closing market prices of the portfolio's
securities.
 EXAMPLE
Let’s assume there is a Mutual Fund “Z” and as of today the total
value of stocks bonds deposits held by the Mutual Funds – daily
expenses is around 100 Crores and there are 10 Crore units of this
particular Mutual Funds held by various investors. So what would be
the NAV of this Mutual Fund.

So it would be RS 10 as of Today. So if you invest around RS

10,000 in Mutual Fund “Z” so you will be allocated 1000 units of
Mutual Funds “Z”.
 EXAMPLE

After some days NAV of Mutual Fund “Z” has

been increased to RS 12 and you want to sell off
your 1000 units. So now 1000 units* 12 = Rs
12000
MUTUAL FUNDS
MUTUAL FUNDS
MUTUAL FUNDS
 SHARPE RATIO
IF SHARPE RATIO IS 0.51 – TO
EARN RS 510, RS 1000 HAS BEEN
PUT ON RISK
MORE SHARPE RATIO, BETTER IT
IS.
MUTUAL FUNDS
MUTUAL FUNDS
MUTUAL FUNDS
PLEASE MAKE NOTES
AS
DISCUSSED IN CLASS.
THANK YOU!!