Analysis of risk and return of mutual fund schemes at Standard Chartered Mutual Funds

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Analysis of risk and return of mutual fund schemes at Standard Chartered Mutual Funds

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Abstract

Balancing of funds which includes issuing & collecting of funds in any economy is very important. There are many financial products in india, not only for balancing but also to provide liquidity for ideal capital, such as bank deposits, NSS savings, securities, insurance etc., which have some risk & returns.

But in recent times new types of products have developed in the financial markets such as derivatives, commodities, mutual funds. Of these mutual funds is one of best sources of investment for the financial markets and investors. This projects aim is to give the reader an idea of which types of fund are better from the investor's point of view in the Standard Chartered Mutual Fund Company.

A mutual fund is a trust that pools the money of a number of investors and invests it in different types of securities to earn a return. The money held in the trust is divided into shares of equal value called "units". Investors become "unit-holders" and are allotted units based on the amount of their investment. The trustees of the mutual fund trust appoint an Asset Management Company (AMC) to manage the investments. They also appoint registrars, auditors, custodians and other service-provides to support the smooth functioning of the fund. The decisions on how to invest the money in the trust are taken by the AMC, which is an investment management fee.

Mutual funds.
1. Introduction.
2. Introduction to mutual funds.
3. History of mutual funds.
4. Setup of mutual funds.
5. Characteristics of mutual funds.
6. Types of mutual funds schemes.
7. Taxation in mutual funds.
8. Briefly benefits of mutual funds.
9. Mutual Fund development in India.
10. The sponsors of AMFI.
11. Risk associated with mutual funds.
12. NAV calculation.
Objectives.
Methodology.
Limitations.
Company profile.
1. Standard chartered mutual fund history.
2. Sponsor.
3. Standard Chartered Trustee Company Private Limited.
4. Standard Chartered Asset Management Company Private Limited.
5. Board of directors.
Theoretical background of topic.
Explanation & analysis of risk & return of selected schemes.
Conclusions.
Findings.
Recommendations.
Bibliography.

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[...] Benefits of Mutual Fund Investment Professional Management Mutual Funds provide the services of experienced and skilled processionals, backed by a dedicated investment research team that analyses the performance and prospects of companies and selects suitable investments to achieve the objectives of the scheme. Diversification Mutual Funds invest in a number of companies across a broad cross-section of industries and sectors. This diversification reduces the risk because seldom do all stocks decline at the same time and in the same proportion. [...]

[...] History of mutual funds UTI was the first mutual fund setup in 1963 in early 1990's; the government permitted public sector banking and institutes to set up mutual funds. In order to protect the investor and promoters and regulate the securities markets, SEBI act was passed in yr 1992. As far as mutual funds are concerned the SEBI formulates policies and regulates the mutual funds to protect the investors SEBI modified the regulations of mutual funds in 1993. Thereafter private sector entities entered the capital markets sponsoring mutual funds in big way. [...]

[...] RISKS ASSOCIATED WITH MUTUAL FUND INVESTMENT: At the cornerstone of investing is the basic principle that the greater the risk you take, the greater the potential reward. Risk is defined as short- term price variability. But on a long-term basis, risk is the possibility that the accumulated real capital will be insufficient to meet financial goals of the investor. Mutual funds offer incredible flexibility in managing investment risk. Diversification and Automatic Investing (SIP) are two key techniques used to reduce investment risk considerably and reach long-term financial goals of investor. [...]

[...] / OTHERS Market Ended Term Ended Long Term Medium Ended Ended High Ended FUND OF FUNDS: Fund of fund are mutual funds that invest in another mutual funds. These funds are no longer operating today. NEW DIRECTION FUNDS: These funds invest in companies engaged in scientific and technical research in fields. Such as birth control, anti-pollution, space research, captive power generation plants. TAXATION IN MUTUAL FUND: A variety of tax laws apply to mutual funds, which are broadly listed below: Capital Grains: Units of mutual fund schemes held for a period more than 12 months are treated as long-term capital assets. [...]

[...] Optimal Portfolio Theory and Mutual Funds: On examination of the relationship between portfolio returns and risk is the efficient frontier, a curve that is a part of the modern portfolio theory. The curve forms from a graph plotting return and risk indicated by volatility, which is represented by standard deviation. According to the modern portfolio theory, funds lying on the curve are yielding the maximum returns possible given the amount of volatility. Notice that as standard deviation increases, so does the return. [...]

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