Beruflich Dokumente
Kultur Dokumente
Introduction
A mutual fund is a professionally managed type of collective investment Mutual funds have a fund manager who invests the money on behalf of the investors worldwide value of all mutual funds totals more than US 26 trillion investor needs to do research before investing which is cumbersome and time consuming
ETFS
Exchange Traded Funds are mutual funds which investors buy/sell directly from the stock exchange. The AMC issues units to a few designated large participants. These participants are also known as Authorized Participants. Buying/Selling of ETFS is similar to buying/selling shares on the stock exchange. Prices are available real time and ETFS can be purchased from a stock broker. An important feature of ETFS is that there is a great reduction in cost. An ETFS has an expense ratio of around 0.75%.
GOLD ETFS(G-ETFS)
These are special types of ETFS which invests in gold and gold related securities. This investment will prevent the disadvantages which holding physical gold can possess.
Credit Risk
It refers to the situation where the borrower fails to honour either one or both of his obligations of paying regular interest and returning the principal on maturity. A bigger threat is that the borrower does not repay the principal. This risk can be avoided if the borrower has a very high credit rating. Credit Rating of borrowers is done by professional credit rating agencies like CRISIL.These agencies have to be registered with SEBI.
LIQUID FUNDS
The biggest contributor to mutual fund industry. Money market refers to that part of the debt market where papers with maturities less than one year is traded.
Regulations
No scheme can invest more than 15% of its NAV in rated debt instruments of a single issuer. This limit may be increased to 20% with prior approval of Trustees. This restriction is not applicable to Government securities.
No scheme can invest more than 10% of NAV in unrated paper of single issuer Total investment by any scheme in unrated papers cannot exceed 25% of NAV No fund, under all its schemes can hold more than 10% of Co.s paid up capital No scheme can invest more than 10% of its NAV in a single company.