Certified Mutual Funds Analyst

TABLE OF CONTENT

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1. Introduction

1.1 Definition of a Mutual Fund

1.2 Reasons for investing in Mutual Funds

1.3 Disadvantages of Mutual Funds

1.4 History of Mutual Funds

1.5 Mutual Funds in India

1.6 Structure of Mutual Funds

 

2. Process of a Mutual Fund

2.1 Setting Investment Goals

2.2 Parties involved in a Mutual Fund

2.3 Role of the AMC

2.4 Sources of Information

 

3. Characteristics and Classes of Funds

3.1 Fund Classes

3.2 Asset Classes

3.3 Open ended and close ended funds

3.4 NFO

3.5 Systematic Investment Plan

3.6 Systematic Transfer Plan

3.7 Systematic Withdrawal Plan

 

4. Types of Mutual Funds

4.1 Money Market Funds

4.2 Fixed Income Funds

4.3 Equity Funds

4.4 Fund of Funds

4.5 Gold ETFS

4.6 Debt Funds

4.7 Fixed Maturity Plans

4.8 Capital Protection Funds

4.9 Gilt Funds

4.10 MIPs

4.11 Child Benefit Plans

4.12 Liquid Funds

4.13 Balanced Funds

4.14 Global Funds

4.15 Specialty Funds

 

5. Buying and selling MFs

5.1 Buying a Mutual Fund

5.2 Selling a Mutual Fund

6. Costs associated with MFs

 

6.1 Management and Operating Expenses

6.2 Sales Charges (Loads)

6.3 Recurring Expenses

6.4 Securities Transaction Tax

6.5 Fees of Fund Managers

 

7. Tax Consequences

7.1 Capital gains

7.2 Indexation benefit

7.3 Tax on Income Distributed

7.4 Tax Deducted at Source (TDS) / Withholding Tax

7.5 Bank Fixed Deposit

7.6 Dividend Payout and Growth Options within Schemes

7.7 Setting Off & Carry Forward of Losses

7.8 Dividend Stripping

 

8. Returns and Risks of MFs

8.1 Types of Mutual Fund Payouts

8.2 NAV

8.3 Expense Ratio

8.4 Risk

8.5 Portfolio Turnover

 

9. Regulations

9.1 Objectives of AMFI

9.2 Investor’s rights and obligations

 

10. Taking investment decision

10.1 Growth Option

10.2 Dividend Payout Option

10.3 Dividend Reinvestment Option

10.4 Bank Products versus Mutual Funds

10.5 Common Pitfalls

 

COURSE OUTLINE

 

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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