...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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...Size and Performance of Chinese Mutual Funds: The Role of Economy of Scale and Liquidity* Ke Tanga,b, Wenjun Wanga and Rong Xub a) Hanqing Advanced Institute of Economics and Finance, Renmin University of China b) School of Finance, Renmin University of China * Contact Author: Ke Tang, Hanqing Advanced Institute of Economics and Finance and School of Finance, Renmin University of China. Email: ketang@ruc.edu.cn. We wish to thank participants in the European Financial Management Association Symposium on Asian finance (Beijing) for helpful comments. We are also grateful to the anonymous referee whose suggestions greatly improved the paper. Tang acknowledges financial support from the Fundamental Research Funds for the Central Universities, and the Research Funds of Renmin University of China. Electronic copy available at: http://ssrn.com/abstract=1933647 Size and Performance of Chinese Mutual Funds: The Role of Economy of Scale and Liquidity Abstract Using a detailed stockholding for a comprehensive sample of Chinese open-end equity mutual funds from 2004 to the first half of 2010, we investigated the effect of economy of scale and liquidity on the relationship between fund size and performance. We find that an inverted U-shape relationship exists between fund size and performance as measured by various performance benchmarks. Both economy of scale and liquidity play important roles in Chinese mutual funds. Furthermore, their combined effect explains the...
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...b) Discuss in details Consolidated Fund Section 39(1) of the Constitution Act 1902 provide ‘ Except as otherwise provided by or in accordance with any Act, all the public moneys… collected, received or held by any person for or on behalf of the State shall form one Consolidated Fund. The Consolidated Fund is the account into which the government deposits taxes, tariffs, excises, fines, fees, loans, income from Crown assets and other revenue once collected, together with transfer from the commonwealth, and from which it withdraws the money it requires to cover its expenditure. Before going further, the Accountant General of Malaysia in compliance with Section 16(1) of the Financial Procedure Act 1957 prepared The Federal Government Financial Statement and audited by the Auditor General before being tabled in the Parliament in compliance with Section 16(2) of the act. The preparation of The Federal Government Financial Statement is constructed to show the financial position, cash flow and financial performance of the government. These Financial Statements report all financial transaction pertaining to the sources and applications of the financial resources as appropriated by the parliament for respective financial year. Statement of Financial Position of the Federal Government shows the amount of cash and investment held in respect of three accounts of the Consolidated Fund which is Consolidated Revenue Account, Consolidated Loan Account and Consolidated Trust Account...
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...DEPARTMENT OF ECONOMICS UNIVERSITY OF GHANA COMPARATIVE ANALYSIS OF THE PERFORMANCE OF MUTUAL FUNDS IN GHANA BY WISDOM KWASHIE AFORNORPE A DISSERTATION SUBMITTED TO THE DEPARTMENT OF ECONOMICS, UNIVERSITY OF GHANA, LEGON, IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF MASTER OF ARTS DEGREE IN ECONOMIC POLICY MANAGEMENT OCTOBER, 2008 DECLARATION I, Wisdom Kwashie Afornorpe, author of this Master of Arts dissertation do hereby declare that, except for references to other people’s works which have been duly acknowledged, the work presented here titled “Comparative Analysis of the Performance of Mutual Funds in Ghana” was done entirely by me. This work has never been presented in whole or in part for any other degree in this University or elsewhere. …..…………………………… Wisdom Kwashie Afornorpe (Student) ……. ………………..…… Mr. Frank Agyire-Tettey (Supervisor) ...
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...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, all you had to do...
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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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...The Definition A mutual fund is nothing more than a collection of stocks and/or bonds. You can think of a mutual fund as a company that brings together a group of people and invests their money in stocks, bonds, and other securities. Each investor owns shares, which represent a portion of the holdings of the fund. You can make money from a mutual fund in three ways: 1) Income is earned from dividends on stocks and interest on bonds. A fund pays out nearly all of the income it receives over the year to fund owners in the form of a distribution. 2) If the fund sells securities that have increased in price, the fund has a capital gain. Most funds also pass on these gains to investors in a distribution. 3) If fund holdings increase in price but are not sold by the fund manager, the fund's shares increase in price. You can then sell your mutual fund shares for a profit. Funds will also usually give you a choice either to receive a check for distributions or to reinvest the earnings and get more shares. Advantages of Mutual Funds • Professional Management - The primary advantage of funds is the professional management of your money. Investors purchase funds because they do not have the time or the expertise to manage their own portfolios. A mutual fund is a relatively inexpensive way for a small investor to get a full-time manager to make and monitor investments. • Diversification - By owning shares in a mutual fund instead of owning individual stocks or bonds...
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...Not-For-Profit Accounting, ACC 410 November 2, 2014 Financial Statement /Audit Report Review This is the Audit Report Review of the evaluation of the Government-wide Financial Statement and the Fund Financial Statement of Paulding County, Georgia. Under compliance of the Governmental auditing standards, GASB Statement No. 34, Paulding County’s report includes Government-wide financial statements, which include the Statement of Net Assets and the Statement of Activities. Also released by Paulding County is the required second set of statements, the Fund financial statements, that include the Balance Sheet-Governmental Funds, Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets, the Statement of Revenues, Expenditures, and Changes in Fund Balances-Governmental Funds, and the statements associated with the other governmental fund categories, general, propriety and fiduciary. The county’s fiscal year ended June 30, 2013 and the reports were released on December 16, 2013 (Paulding County, GA 2013). Mauldin & Jenkins CPA, LLC of Atlanta, Georgia, independently audited the county’s basic financial statements. They audited the business-type activities, the comprehensive discretely presented component units, each major fund, and the aggregate remaining fund information of Paulding County. The component units are either 1) legally separate entities for which the County is financially accountable; or 2) entities whose relationship with the County...
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...the variety of funds the city uses and accounting practices for those funds as well as anomalies that arise from reviewing the report. In addition five relevant ratios will be used to assist in summarizing the financial condition of the city. The major governmental funds used by the city include the General Fund, the Motor Fuel Tax Fund, and the State and Federal Grants Funds. The Motor Fuel Tax Fund is used for projects financed by the Motor Fuel Tax which is assembled and dispersed by the State of Illinois. The State and Federal Grants funds are financed by grants from state and federal governments and are used to support community development and housing. Although this may seem understandable, there is no mention in the report of what “community development” actually means. What is known, however, is that these grants are legally restricted to specific uses. The General Fund accounts for all revenues and expenses not allocated specifically to other funds. Governmental funds not considered major include Special Revenue Fund, Capital Project Fund, Debt Service Fund, and Permanent Funds. The name of the Permanent Fund does not in any way describe what it is for, but notes to the financial statements indicate that it accounts for the City’s revolving loan funds. Besides the Governmental Funds the city also maintains Proprietary Funds and Fiduciary Funds. Types of Proprietary Funds include the Enterprise Funds which consist of the Water Fund, Sewer Fund, and Quincy Regional...
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...functions of Sacramento. The Introduction Letter is broken down into distinct sections, each touching on various operational aspects of the city including estimated population, services the government provides to the populace, and overview of the city’s profile. This profile includes the location and general statistics of the city itself. One section of the introduction letter is how the financial funds the city uses are set and defined. There are four separate, legal entities that make up the fiscal operations of the City. In discussing the current and future plans of the city, a positive note was reported that the city, using funds collected from Measure U, a ½ cent increase of sales and use taxes, provided enough extra funding for the city to maintain general services without cutting or reducing them. Different plans are discussed in a brief overview that touches on estimates of general fund collections and the allocation of resources required for maintaining and growing the city’s fiscal structure. One of the plans highlighted deals with a part of the general fund that accounts for the economic uncertainty that cities have. As a part of the...
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...private equity partnerships. Average fund returns (net of fees) approximately equal the S&P 500 although substantial heterogeneity across funds exists. Returns persist strongly across subsequent funds of a partnership. Better performing partnerships are more likely to raise follow-on funds and larger funds. This relationship is concave, so top performing partnerships grow proportionally less than average performers. At the industry level, market entry and fund performance are procyclical; however, established funds are less sensitive to cycles than new entrants. Several of these results differ markedly from those for mutual funds. THE PRIVATE EQUITY INDUSTRY, primarily venture capital (VC) and buyout (LBO) investments, has grown tremendously over the last decade. While investors committed less than $10 billion to private equity partnerships in 1991, they committed more than $180 billion at the peak in 2000 (see Jesse Reyes, Private Equity Overview and Update 2002). Despite the increased investment in the private equity asset class and the potential importance of private equity investments for the economy as a whole, we have only a limited understanding of private equity returns, capital f lows, and their interrelation. One of the main obstacles has been the lack of available data. Private equity, as the name suggests, is largely exempt from public disclosure requirements. In this paper, we make use of a novel data set of individual fund performance collected by Venture Economics...
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...A PROJECT REPROT ON MUTUAL FUNDS IN INDIA EXECUTIVE SUMMARY In few years Mutual Fund has emerged as a tool for ensuring one’s financial well being. Mutual Funds have not only contributed to the India growth story but have also helped families tap into the success of Indian Industry. As information and awareness is rising more and more people are enjoying the benefits of investing in mutual funds. The main reason the number of retail mutual fund investors remains small is that nine in ten people with incomes in India do not know that mutual funds exist. But once people are aware of mutual fund investment opportunities, the number who decide to invest in mutual funds increases to as many as one in five people. The trick for converting a person with no knowledge of mutual funds to a new Mutual Fund customer is to understand which of the potential investors are more likely to buy mutual funds and to use the right arguments in the sales process that customers will accept as important and relevant to their decision. This Project gave me a great learning experience and at the same time it gave me enough scope to implement my analytical ability. The analysis and advice presented in this Project Report is based on market research on the saving and investment practices of the investors and preferences of the investors for investment in Mutual Funds. This Report will help to know about the investors’ Preferences in Mutual Fund means Are they prefer any particular Asset Management Company...
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...relevant statements on pages 10 and 11) of the Management’s Discussion and Analysis, it is noted that the fund financial statements are broken down by governmental funds, proprietary funds, and fiduciary funds. The governmental funds are broken down into general, special revenue, debt service, capital projects and permanent funds. It is interesting to note that the city of Seattle has identified 3 major governmental funds that are presented separately in the governmental funds balance sheet and statement of revenues, expenditures, and other changes in fund balances. The major funds are the General Fund, Transportation Fund, and Low-Income Housing Fund. The general fund should always be reported as a major fund. Other individual funds should be reported as major funds if, 1) total assets, liabilities, revenues, expenditures of that fund are at least 10% of the corresponding total for all funds of that category and 2) total assets, liabilities, revenues, expenditures of that fund are at least 5% of the corresponding total for all governmental and enterprise funds combined. For example, the total assets for the transportation fund of $57,493 are at least 5% of the total assets of $1,048,526 for all funds combined. 2. The city has numerous proprietary funds that account for governmental activities similar to activities a “for profit” organization reports. These types of funds or activities typically charge user fees or cost to the citizens. They are reported as...
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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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...Budgets and Funds — The City of Portland Introduction In each government organization’s management systems, the budget plays a significant role which reflects its policy, goals, and priorities. To understand better, it is necessary to know the purpose and function of budget. This paper will talk about why and how to use budgets and funds in governmental accounting by analyzing the budget of the city of Portland. First of all, I will introduce the fund system of accounting and compare the different budgets for funds. Second, I will analyze the budget of Portland to give an idea that how they use funds according to their purpose and restrictions, and how this can be conveyed to the voters so they can ask the right questions to make a good choice in the election. Last, I will give my opinion on how government can explain the budgets used more effectively for the public to understand. Fund System and Budget To understand how budget be used, it is necessary to know the fund system of accounting first. Overall in governmental accounting there are three broad categories of fund types: governmental funds, proprietary funds, and fiduciary funds. First, the governmental funds, which are taxed based, receive sales tax, property tax, vehicle tax, and other state and federal taxes as their main source of revenues. There are five types of funds in this category: general fund, special revenue funds, capital projects funds, debt service funds, and permanent funds. Second, proprietary...
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