...Banking Southern University, Bangladesh. MUTUAL FUND MANAGEMENT PRACTICES IN BANGLADESH MUTUAL FUND: Mutual fund are Non-banking or, non depositary financial intermediaries that gather funds from the saving and investing public and utilize the accumulated pool of funds by investing in stocks, bonds, currencies, futures and options contracts or a variety of other financial instruments . A key elements in any mutual fund is its ability to provide the investors with professional management of their funds along with other professional services such as record keeping, custodial services and prompt dissemination of information. Mutual Funds refers to a fund, managed by an investment company with the financial objective of generating high Rate of Returns. These asset management or investment management companies collects money from the investors and invests those money in different Stocks, Bonds and other financial securities in a diversified manner. Before investing they carry out thorough research and detailed analysis on the market conditions and market trends of stock and bond prices. These things help the fund mangers to speculate properly in the right direction. Mutual funds are portfolios of different securities such as stocks, bonds, treasuries, derivatives, etc. Mutual funds pool money of both individual and institutional investors allowing the funds to achieve: (i) economies of scale by reducing costs and increasing investment...
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...Report On “Mutual Funds and their role in portfolio management” Submitted in partial fulfillment of the requirement of Certification Course in Capital and Financial Markets Submitted by: Name: Karthik L.Reddy Roll No. 5 OCPCFM Batch June 2012 Under the Guidance of: Dr. J. Symss Indian Institute of Foreign Trade New Delhi 1 INDEX Serial No. 1 2 Executive summary Objectives Introduction Advantages and Disadvantages Types of Funds Managing a portfolio of funds MF industry in India Topic Page Numbers 4 5 6 9 12 15 21 26 27 28 4 Chapters 5 6 7 Conclusion References Appendix 2 APPENDIX Appendix No. Appendix 1 Appendix 2 Appendix 3 Description Major MF Companies in India and Top Funds Introduction to AMF India Knowing the Prospectus Page Numbers 28 31 33 3 EXECUTIVE SUMMARY This report – “Mutual Funds and their role in portfolio management” would help the readers take advantage of an excellent investment vehicle: mutual funds — the best of which offer you diversification, which reduces your risks, and low-cost access to outstanding money managers, who boost your returns. The topic has been chosen to provide a detailed introduction to the world of mutual funds along with the jargon associated with it, the various types of mutual funds available in today’s market. Mutual funds play a vital role in any investment portfolio. So managing a portfolio of funds becomes very critical for any investor – small or big, short-term or long-term...
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...about the products of the company and their position in the market. The Mutual fund is one of them who are performing their works very effectively. As we are the students of BBA department, we have to learn about the mutual fund investment system analysis of a firm. That’s why we have decided to analysis on mutual fund that renown in the world. 1.1 Origin of the Report This report is a part of “Investment Management” course under the BBA curriculum. As we are the students of BBA department, we have to learn about the financial system analysis of financial firms. That’s why we have decided to analysis on mutual fund. 1.2 Objectives • To improve our knowledge • To make us experienced • To develop our skill. • To provide brief information about our analysis 1.3 Problem and Purpose 1.3.1 Problem Statement This report seeks to address the following requirement: “To study about the mutual fund, its overall process analysis followed by firm. 1.3.2 Purpose of the Report The objective of the report is- “To acquire the practical knowledge of Mutual fund analysis followed by the firm. 1.4 Scope and Limitation 1.4.1 Scope This paper includes financial system in Bangladesh. Then Structure of Financial System, History of Bangladesh Capital Market, mutual funds, types of mutual fund schemes, set up of mutual fund, invest in mutual fund and rights of a mutual funds holder. • Our time was short • We are not experienced ...
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...Business Management Dynamics Vol.2, No.2, Aug 2012, pp.01-09 Indian Investor’s Perception towards Mutual Funds Dr. Nishi Sharma1 Abstract The concept of mutual fund emerged in Netherlands in 18th century and introduced in India by Unit Trust of India in1960s. As the mutual fund industry provides an option of diversified investment structure with varying degree of risk, it was supposed to be the most lucrative market for Indian investors. It was believed that it will surely tap the savings of common man. But in practice it failed to become a primary choice for investment to Indian investor. During almost six decades (1965-2011) the value of assets under management of mutual fund industry experienced great swings. As against the developed countries where almost every second investor is a mutual unit holder, the product could not get much popularity in India. In this reference, the present paper attempts to investigate the reasons responsible for lesser recognition of mutual fund as a prime investment option. It examines the investor’s perception with reference to distinct features provided by mutual fund companies to attract them for investing in specific funds/schemes. The study uses principal component analysis as a tool for factor reduction. The paper explored three factors named as fund/scheme related attributes, monetary benefits and sponsor’s related attributes (having respectively six, four and four variables) which may be offered to investors for securing their patronage...
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...[pic] A RESEARCH PAPER On Opportunities in indian market of mutual funds investment PIONEER (Since 1996) Submitted to Submitted By Prof. Dr. V K Jain Ravendra Kushwaha Prof. Nidhi Kothari MBA 3rd sem Roll. No. 09010118 DECLERATION I hereby declare that this Research Paper entitled “OPPORTUNITIES IN INDIAN MARKET OF MUTUAL FUNDS INVESTMENT” submitted for the extra co curriculum activities fulfillment of the requirement of Master of Business Administration (MBA) of PIONEER INSTITUTE OF PROFESSIONAL STUDIES INDORE is based on secondary data found by me in various Companies fact sheets, books, magazines and websites & Collected by me in under guidance of Prof. Nidhi Kothari. DATE: Ravendra Kushwaha ...
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...EXECUTIVE- SUMMARY The primary objective of this project is based on a methodological study, as it required to me to understand Indian consumer behavior related to the investments in mutual funds. To execute the knowledge, I preferred to study about the mutual funds and some other popular investments options in India. Thus the first part of the project based on learning the following in details: ➢ About Religare ➢ Product and services of Religare ➢ Services and charges provided by Religare ➢ Consumer behavior ➢ Analysis of Investors profiles ➢ Some popular Investments options in India ➢ Mutual Funds ➢ Market survey and research. After undergoing the training about the products and operational features. I started exploring the product and contact the prospective customers by way of tele callings, emails, corporate presentations, road shows and by arranging canopy. My primary aim was to give better options to the prospective customers by offering them products specialized features and its unique incomparable qualities in the services provided by Religare securities limited. OBJECTIVE OF THE STUDY The objective of this research and survey is to know the Indian consumers behavior related to the investment in Mutual Funds. In this research & survey firstly I tried to analyze the various popular investment options available in India, and their strengths and weaknesses. Apart from this I also tried to find out the...
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...Analysis of how Mutual Funds can be used as a dynamic tool for diversification.. INTRODUCTION There are a lot of investment avenues available today in the financial market for an investor with an invest-able surplus. He can invest in Bank Deposits, Corporate Debentures, and Bonds where there is low risk but low return. He may invest in Stock of companies where the risk is high and the returns are also proportionately high. The recent trends in the Stock Market have shown that an average retail investor always lost with periodic bearish tends. People began opting for portfolio managers with expertise in stock markets who would invest on their behalf. Thus we had wealth management services provided by many institutions. However they proved too costly for a small investor. These investors have found a good shelter with the mutual funds A mutual fund is an investment vehicle that comprises a pool of funds collected from a large number of investors who invest in securities such as stocks, bonds, and short term money market instruments. The portfolio of a mutual fund is structured and maintained by fund managers. Diversification means spreading out money across many different types of investments. When one investment is down another might be up. Diversification of investment holdings reduces the risk tremendously A mutual fund is a group of investors operating through a fund manager to purchase a diverse portfolio of stocks or bonds. Mutual funds are highly cost...
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...Gupta (2013266) | 9/6/14 | Financial Services | | Q. What does the Government of India hope to achieve with the new draft RBI guidelines for the wealth management industry? What are the reasons behind introduction of the new regulations? A. Reserve bank of India’s guidelines for the wealth management industry prohibit banks from offering discretionary wealth management services to their customers, wherein a portfolio manager independently manages funds of individual customers and takes their investment decisions. The discretionary portfolio management service also includes portfolios broadly directed by the customer, or those wherein the customer gives a negative list of investment products at the time of opening the account so that the fund manager ensures that such investment products are not included in the portfolio. In case of non-discretionary services, the RBI allows banks to work through a separately identifiable department or division (SIDD) or a subsidiary. Such a subsidiary or SIDD would require to be registered with market regulator Securities and Exchange Board of India (SEBI) and comply with SEBI guidelines on providing these services, including the code of conduct, if any. There should be an arm’s length relationship between the bank and the subsidiary if the latter is offering wealth management services, the central bank said. RBI has also stated that bank employees involved in marketing or sales of third-party products should not be given any direct...
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...Multiple Choice Questions 1. Which one of the following statements regarding open-end mutual funds is false? A) The funds redeem shares at net asset value. B) The funds offer investors professional management. C) The funds offer investors a guaranteed rate of return. D) B and C. E) A and B. Answer: C Difficulty: Moderate Rationale: No investment offers a guaranteed rate of return. 2. Which one of the following statements regarding closed-end mutual funds is false? A) The funds always trade at a discount from NAV. B) The funds redeem shares at their net asset value. C) The funds offer investors professional management. D) A and B. E) None of the above. Answer: D Difficulty: Moderate Rationale: Closed-end funds are sold at the prevailing market price. 3. Which of the following functions do mutual fund companies perform for their investors? A) Record keeping and administration B) Diversification and divisibility C) Professional management D) Lower transaction costs E) All of the above. Answer: E Difficulty: Easy Rationale: Mutual funds are attractive to investors because they offer all of the listed services. 4. Multiple Mutual Funds had year-end assets of $457,000,000 and liabilities of $17,000,000. There were 24,300,000 shares in the fund at year-end. What was Multiple Mutual's Net Asset Value? A) $18.11 B) $18.81 C) $69.96 D) $7.00 E) $181.07 Answer: A Difficulty:...
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...stock trading and mutual funds. As the business grew, Towerton diversified into two new product lines, investment account management and financial planning. Although revenue has grown with the new product lines, Towerton’s management is disappointed with the firm’s profitability. (See Exhibit 5-13 for the most recent monthly income statement, which is typical for the company.) Towerton’s three groups of professional staff deal directly with customers across the four product and service lines. Brokers execute stock trades and mutual fund transactions and provide advice and recommendations. However, Towerton’s brokerage customers make their own buy and sell decisions. Towerton charges a flat fee per stock trade that depends on the total amount of assets a customer has on deposit with the company. Last month, these fees averaged $8.80 per transaction. For mutual fund transactions, Towerton charges 1.5% of the value of the mutual fund shares purchased. This fee averaged $41.45 per mutual fund transaction last month. There is no charge when customers later sell their shares. Investment account managers actively manage customers’ investments by buying and selling stocks to meet customer objectives. These managers meet initially with customers to learn about their investment goals, interests, and risk tolerance. Thereafter, the parties meet quarterly to review account performance and investment strategy. Towerton charges each customer an annual asset management fee of 1.5% of the...
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...institutions for fund management. The given paper is a descriptive analysis of the role of financial institutions in financial markets. In addition to this, the paper also talks about how these institutions interact with each other. Financial market is a system that provides a common platform to people for the purpose of buying and selling financial securities, commodities, and other fungible items. In addition to that, the financial market also helps in risk mitigation and international trade. An efficient financial market facilitates these transactions at low cost and effective hypothesis (Amadeo, 2010). Financial markets can be grouped as: * Capital market, Stock and Bond markets. * Commodity markets. * Money markets, for short and long term financing. * Derivative markets, provides tool for managing financial risks. * Insurance markets; and * Foreign exchange markets. On the other side of things, financial institutions in simple words can be defined as an institution that provides various financial services to its customers. These institutions act as financial intermediaries between individual customers, organizations, and government (InvestorWords.com, 2010). Financial intuitions can be grouped under three heads, namely: 1. Depositories, these institutions accepts, store, and manage deposits and loans. Example, banks, credit unions, companies giving mortgage loans, and credit trusts and unions. 2. Insurance and pension funds providers, these...
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...EQUITY DIVERSIFIED MUTUAL FUNDS V/s DIRECT EQUITY: A comparative study Submitted in Partial Fulfillment for the Degree of Bachelor of Business Studies By Akshat Jain (Roll No. – 08/BBS/7160 Batch: 2008-2011 ) To DEEN DAYAL UPADHYAYA COLLEGE University of Delhi Shivaji Marg, Karampura New Delhi-110015 | | | ACKNOWLEDGEMENT Encouragement motivates a person towards one’s aim while guidance helps one to achieve it. Both encouragement and guidance take one towards success in one’s works. It would be difficult and almost impossible to achieve excellence without the blessings of God above and of elders. I convey my heartfelt affection and accord my deep sense of gratitude to Dr. Deepa Kamra, Faculty Guide for inspiring guidance, constructive criticism, unlimited interest and innovative ideas throughout the pursue of this manuscript. Akshat Jain DECLARATION I Akshat Jain have completed the Summer Training Project titled “EQUITY DIVERSIFIED MUTUAL FUNDS V/S DIRECT EQUITY” under the guidance of Dr. Deepa Kamra in the partial fulfillment of the requirement for the award of degree of Bachelor of Business Studies from Deen Dayal Upadhyaya College, Delhi University. This is an original piece of work & I have neither copied and nor submitted it earlier elsewhere. Akshat Jain Certificate from Internal Guide ...
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...Managerial Economics - Trends & growth of Mutual fund in India. Mutual Fund: Mutual Fund is an institutional arrangement wherein savings of millions of investors are pooled together for investment in a diversified portfolio of securities to spread risk and to ensure steady returns. These funds bring a wide variety of securities within the reach of the most modest of investors. It is essentially a mechanism of pooling together savings of large number of investors for collective investment with an approved objective of attractive yield and appreciation in value. The Mutual Funds offers different investment objectives such as growth, income and Tax planning. Mutual Funds play vital role in resource mobilization and its efficient allocation to the productive sources of the economic system. Throughout the world, these funds have worked as a reliable instrument of change in financial intermediation, development of capital markets and growth of the Corporate sector. The process of Liberalization, deregulation and reconstruction of the Indian economy has created necessity for efficient allocation of scarce financial resources. In this process of development, Mutual Funds have emerged as strong financial intermediaries and are playing an important role in bringing stability to the financial system and efficiency to the resource allocation process. History Mutual Fund investment traces its origin to the investments of Scottish and English investors in the American West in the 1800s...
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...Performance Evaluation of Finnish Mutual Funds 2014 TABLE OF CONTENT 1! ABSTRACT ............................................................................................... 1! 2! INTRODUCTION ..................................................................................... 2! 2.1.! Purpose ................................................................................................................. 2! 3! THE FINNISH FUND MARKET .............................................................. 3! 4! PREVIOUS RESEARCH ........................................................................... 5! 5! METHODOLOGY ..................................................................................... 8! 5.1.! Standard Deviation .............................................................................................. 8! 5.2.! Beta ....................................................................................................................... 8! 5.3.! Jensen Alpha ........................................................................................................ 9! 5.4.! Sharpe Ratio ....................................................................................................... 10! 5.5.! Treynor Ratio ..................................................................................................... 10! 5.6.! Hypothesis ........................................................................................................... 11! ...
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...1.1. Introduction Mutual Funds in India – History The concept of Mutual Funds in India emerged as success as early as 1990s, when Government allowed public sector banks and institutions to launch mutual funds schemes. Unit Trust of India was the first Mutual Fund in India set-up in the year 1963 Security and exchange Board of India (SEBI) act was passed in the year 1192. The objectives of SEBI are - to regulate security market and protect the interests of investor community. It is regulatory institution which is responsible for formulating policies and guidelines for operation of mutual funds in India. Mutual funds have become extremely popular over the last 20 years. What was once just another obscure financial instrument is now a part of our daily lives. More than 80 million people, or one half of the households in America, invest in mutual funds. In fact, many people think investing means buying mutual funds. After all, its common knowledge that investing in mutual funds is (or at least should be) better than simply letting your cash waste away in a savings account, but, for most people, that's where the understanding of funds ends. It doesn't help that mutual fund salespeople speak a strange language that is interspersed with jargon that many investors don't understand. Originally, mutual funds were heralded as a way for the little guy to get a piece of the market. Instead of spending all your free time buried in the financial pages of the Wall Street Journal...
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