Table of Contents

1. What is Mutual Funds 3
2. Mutual Funds operation flow chart 3
3. Organization of Mutual Fund …………………………………………………………4
4. Types of Mutual Funds 4
5. Definations of Frequently used terms 9
6. The advantages of Mutual Fundst 10
7. Understanding & Managing Risk 11
8. How to invest in Mutual Funds 12
9. Risk Factors in Mutual Funds 13
10. Do’s & Don’t’s while selecting Mutual Funds 14
11. Company Portfolio 15
12. Case Study – Mutual Funds Report March 2011 Review 15
13.. Conclusion 20
14. References 22

PART I

What is Mutual Fund ?

• A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. • The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. • The income earned through these investments and the capital appreciation realized are shared by its unit holders in proportion to the number of units owned by them.
Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost.

Mutual Fund Operation Flow Chart

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1. Organization of Mutual Funds :
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2. Types Of Mutual Funds
There are a wide variety of Mutual Fund schemes that cater to your needs, whatever your age, financial position, risk tolerance and return expectations. Whether as the foundation of your investment programme or as a supplement,
Mutual Fund schemes can help you meet your financial goals?

A. By Structure

Open-Ended Schemes :

These do not have a fixed maturity. You deal with the Mutual Fund for your investments and redemptions. The key feature is liquidity. You can conveniently buy and sell your units at Net Asset Value (NAV)