Course Outline
1. Introduction
- Provides an understanding of the concept of Mutual Funds
- Explains the various reasons for investing in Mutual Funds
- Explains the disadvantages of Mutual Funds
- Provides a brief history about Mutual Funds
- Provides the history of Mutual Funds in India
- Illustrates the structure of Mutual Funds
2. Process of a Mutual Fund
- Describes the process of setting investment goals
- Defines the role and responsibility of each party involved in regulating Mutual Funds
- Defines the role of AMC IN Mutual funds
- Explains the various sources of Information
3. Characteristics and Classes of Funds
- Identified the various characteristics and classes of funds
- Classifies mutual funds on the basis of structure or maturity period
- Defines the various types of fund classes
- Explains the various types asset classes and there functionality
- Identified the open ended and close ended funds schemes
- Explains the concept of New Fund Offer (NFO)
- Explains the meaning and process of Systematic Investment Plan (SIP)
- Explains the functions of Systematic Transfer and Withdrawal Plan
4. Types of Mutual Funds
- Explains the money market funds and there functions
- Explains the fixed income funds and there functions
- Explains the functionalities of equity funds and there various types such as index funds, diversified large cap funds, madcap funds, sectoral funds, other schemes
- Explains the scheme for fund of funds
- Explains the objectives and characteristics of Gold ETFS
- Explains the objectives of debt funds and pricing of debt instruments
- Explains the features of fixed maturity plans
- Describes the purpose, structure and opportunities underlying capital protection funds
- Explains the meaning and types of gilt funds
- Explains the purpose and importance monthly income plans (MIPs)
- Explains the purpose child benefit plans with example
- Explains the functionalities of liquid funds
- Explains the purpose and types of balanced funds
- Explains the meaning of global funds
- Explains the meaning of Specialty Funds
5. Buying and Selling MFs
- Explains the process of and types of buying a mutual fund
- Explains the process of and types of selling a mutual fund
6. Costs associated with MFs
- Explains the types of management and operating expenses
- Explains the meaning of sales charges (loads) and their types
- Describes the different types of recurring expenses
- Explains the meaning of Securities Transaction Tax
- Explains the method of fees paid to fund managers
7. Tax Consequences
- Explains the types and computation of capital gains
- Explains the meaning and computation of indexation benefit
- Explains the calculation of Tax on Income Distributed
- Explains the rules and sections entailing Tax Deducted at Source (TDS) / Withholding Tax
- Explains the meaning, features of bank fixed deposit and associated terms such as term deposits and floating interest rate deposit
- Explains the meaning and features of Dividend Payout and Growth Options within Schemes
- Illustrates the process of setting off & carry forward of losses
- Illustrates the meaning and process of dividend stripping
8. Returns and Risks of MFs
- Describes the various types of mutual fund payouts such as dividend payments, capital gains distribution, increased NAV, growth option, etc
- Illustrates the meaning and computation of NAV
- Illustrates the computation of Expense Ratio
- Describes the types of risks such as interest rate risk, credit risk
- Explains the terms such as standard deviation, beta, weighted average maturity, modified duration, sharpe ratio etc
- Explains the effects of AUM on portfolio turnover, analyzing cash level in portfolios, and past performance
9. Regulations
- Explains the ways in which mutual funds are regulated such as through registration requirement, prospectus requirement, funds operation and sales conduct
- Explains the principle objectives of AMFI
- Explains the investor’s rights and obligations
- Explains the terms such as offer document, key information memorandum, scheme information document, statement of additional information etc
10. Taking investment decision
- Explains the meaning of growth option, dividend payout option, dividend reinvestment option
- Explains the difference between bank products and mutual funds
- Illustrates the drawbacks of investing in mutual funds, common myths and possible measure for avoiding pitfalls
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