Mutual Fund Products and Features

Mutual funds have become a much sought after investment product in recent years. This course demystifies the concept of mutual funds and helps create awareness and knowledge about the industry and its functioning.

Why should one take this course?

•To understand the concept of mutual funds.
•To know about the roles of different players viz., custodians, asset management companies, sponsor etc. in the mutual fund industry.
•To learn about the tax and regulatory issues related to mutual funds.
•To understand the fundamentals of net asset value (NAV) computation and various investment plans.
Who will benefit from this course?

•Students
•Investors
•Financial planners
•Analysts
•Equity researchers
•Anybody having interest in the Indian mutual fund industry
Test details

Duration: 120 minutes

No. of questions: 60

Maximum marks: 100, Passing marks: 50 (50%); There is no negative marking in this module.

Certificate validity: For successful candidates, certificates are valid for 5 years from the test date.

Fees

1,500/- (Rupees One Thousand Five Hundred Only).

Course outline

•Mutual Funds
Concept and structure of mutual funds in India; Role of custodian; Registrar and transfer agent; AMC; New fund offer's & procedure for investing in NFO; Investors rights and obligations.
•Mutual Fund Products and Features
Concept of open ended and close ended fund; Types of funds - equity, index, diversified large cap funds, midcap fund, sector fund and other equity schemes; Concept of entry and exit load; Expense ratio; Portfolio turnover; AUM; Analysis of cash level in portfolio.
•Gold ETFs
Introduction to exchange traded funds; Market making by authorized participants; creation units; Portfolio deposit and cash component
•Debt Funds
Salient features of debt fund; Concept of interest rate and credit risk; Pricing of debt instrument.
•Liquid Funds
Salient features of liquid funds; Floating rate scheme and portfolio churning in liquid funds.
•Taxation
Taxation of capital gains; Indexation benefit and FMP.
•Regulations
Role and objectives of AMFI; Different types of plans; Systematic Investment Plan (SIP); Systematic Transfer Plan (STP) and Systematic Withdrawal Plan (SWP); Dividend payout.