01 Basics of Equity

02 Why Equity ?

03 Why Mutual Funds ?

04 Basics of Mutual Funds

05 Types of Mutual Funds

06 Terminologies & Concepts

07 Financial Planning

08 Case Studies

09 Objection Handling

10 Form Filling

11 FundzBazar

12 Business Opportunities
Basics of Equity
No business can survive for even a But such source of finance is not
single day, in absence of finance. viable in the long run as lenders
aren’t participating in the business
of the borrower.

Businesses who are in need of Hence, companies often rely on

adequate finance, usually borrow equity, i.e. raising money from
from banks or other sources, paying investors by offering them a share
them interest in return. in ownership of the company.
Basics of Equity
Shareholders can earn in two ways:

Through DIVIDENDS Through CAPITAL APPRECIATION

i.e. share in the profits earned i.e. when shares are sold at a price
by the company higher than the buy price
Basics of Equity
Inflation

Why Invest in Equity?

To earn net of taxes return which is
higher than the effective inflation rate.

Limitations of Investing in Stocks Directly:

- Selecting and monitoring stocks is a
time consuming task.
- To able to select stocks one requires to
have certain skills, experience & resources.
Basics of Mutual Funds

What is an alternative then?

Those of us who:
- Can’t Understand the nitty-gritty of the equity or debt markets
- Do not have enough time to select & monitor stocks
- Lack of required research inputs & resources

Choose to Invest through

Mutual Fund
which is an indirect way
Basics of Mutual Funds

What is a Mutual Fund?

Mutual fund is a vehicle which
- Collects money from investors
- Invests in different markets and securities
- In line with the investment objectives agreed upon

Collects Money Invest in Market Based on the

from Investors & securities investment objective
Advantages of Mutual Funds

Professional Management
This includes
- Investing in line with the investment objective
- Investing based on adequate research
- Ensuring that prudent investment processes are followed
Advantages of Mutual Funds

Portfolio Diversification
- Investing in MF provides investors the exposure to a
range of securities held in their investment portfolio.
- Thus, even a small investment of Rs. 500 in a mutual
fund scheme can give investors proportionate holding
in many diversified sectors and companies.
Advantages of Mutual Funds

Economies of scale
- Pooling of large sum of money from many investors
makes it possible for the mutual fund to engage
professional managers for managing investments.
- Individual investors with small amounts to invest
cannot, by themselves, afford to engage such
professional management.
Advantages of Mutual Funds

Liquidity
- Investors in a mutual fund scheme can take out
money as much as he requires.
- Depending on the structure of the mutual fund
scheme, this would be possible, either at any time,
or during specific intervals, or only on closure of the
scheme.
Advantages of Mutual Funds

Systermatic Approach

SIP (Systematic SWP (Systematic STP (Systematic

Investment Plan) Withdrawal Plan) Transfer Plan)
Mutual funds that offer Mutual funds that offer Mutual funds that offer
facilities to help investors facilities to help investors facilities to move money
invest amounts regularly withdraw amounts regularly between different schemes

-
Advantages of Mutual Funds

Regulatory Comfort
- The regulator, Securities and Exchange Board of
India (SEBI), has mandated strict checks and
balances in the structure of mutual funds and their
activities. Mutual fund investors benefit from such
protection
Basics of SIP

What is Systematic Investment Plan (SIP)?

It’s a mode of investment where a pre-defined fixed
sum of money get invested at a regular frequency
(monthly, quarterly, weekly etc.) through automated
instruction given to bank.
Advantages of SIP

Light on the Wallet

- We all have financial goals to achieve but
not all of us can afford to invest the required
amount at a go.

- Hence it is often preferred that we invest

small sum of money at regular intervals as it
doesn’t pinch us much.
Advantages of SIP

Makes Market Timing Irrelevant:

- When we invest through SIP, then we
follow a disciplined approach

- i.e. whether it is rainy or sunny – we

invest a fixed sum of money every time

- This approach helps creating lot of

wealth over long term.
Advantages of SIP

Power of Compounding
- Regular investments through the SIP
route will help our wealth to grow by
leaps and bounds Power of Compounding
Advantages of SIP

Rupee Cost Averaging

- Through SIP we would typically buy
more of a mutual fund unit when prices
are low and similarly buy fewer mutual
units when prices are high.

- It enables us to lower the average cost

of our investments.
Types of Mutual Funds

Organisational Portfolio Investment Portfolio

Structure Management Objective Basis

Open Active Growth Equity

Ended Fund Fund Fund Fund

Close Passive Value Debt

Ended Fund Fund Fund Fund

Interval Income Hybrid

Fund Fund Fund
Equity Mutual Funds Types

Large cap
- Invests into top 100 listed companies based on market
capitalization
-
Min 80% in Largecap companies
Mid cap
- Min 65% in Mid cap companies
- Sector rotation based on the economic and market condition

Small cap
- Min 65% in Small cap companies
- Invest in Small cap companies having potential to
grow over a period of time
Equity Mutual Funds Types

Multi cap Fund

- No sector bias – Invests into more than 1 sector
- Min 25% of total assets of the scheme in each of the
three categories - Large Cap, Mid Cap & Small Cap.
Flexi cap Fund
- An open-ended, dynamic equity scheme that invests across
various market capitalizations (large, mid and small caps).
- The minimum investment in equity and equity-related
instruments needs to be 65% of the total assets of the scheme.
Large & Mid cap Fund
- Min 35% in Largecap companies & Min 35% in Midcap
companies
- More volatile compared to Large Cap funds
Equity Mutual Funds Types

Dividend Yield
- Min 65% in Equities investing predominantly in high Dividend yield stocks

Value
- Min 65% in Equities which should follow value strategy

Focused
Min 65% in Equities (Maximum 30 stocks). Focus can
be on Largecap, Multicap, Midcap or Smallcap
Equity Mutual Funds Types

Sectoral/Thematic Fund
- Invests only into one sector – e.g. Pharma Fund, Banking Fund
- Risk is higher compared to any other equity fund category
- Min 80% in stocks of a particular sector/theme

ELSS (Equity Linked Saving Scheme) Fund

- An ELSS fund is predominantly an equity oriented scheme
- Investment in ELSS of up to Rs. 1.5 lakhs can be claimed as
deduction from taxable income u/s 80C
- Tax saving of up to Rs. 46800/- is possible
- ELSS has a lock-in period of 3 years
Equity Mutual Funds - Suitability

Horizon Wise: Long Term

Risk Appetite Wise

- Conservative: Large Cap
- Moderate: Multi cap, Large & Mid
Cap, ELSS, Value, Focused
- Aggressive: Mid Cap, Small Cap,
Sectoral/Thematic Funds
Equity Mutual Funds - Taxation

Short Term Capital Gains

- Short Term Capital Gain: < 1 Year
- Short Term Capital Gain Tax Rate: 15%

Long Term Capital Gains

- Long Term Capital Gain: > 1 Year
- Long Term Capital Gain Tax Rate: 10% (up to 1 lakh exempted)

Dividend Distribution Tax

- Dividends are taxable in the hands of unit holders at the
applicable rate as per their tax slab
Debt Mutual Funds Types

Invest primarily in money market instruments like T-bills, CDs and CPs

Category Duration of Holdings

Overnight Investment in overnight securities having maturity of 1 day
Liquid Maturity of upto 91 days only
Ultra Short Term Macaulay duration of the portfolio is between 3 months - 6 months
Low Duration Macaulay duration of the portfolio is between 6 months- 12 months
Money Market Maturity of upto 1 year
Debt Mutual Funds Types

Short Duration
- Invests in CP (Commercial Papers), CD
(Certificate of Deposits) and short
maturity bonds

- Macaulay duration of the portfolio is

between 1 year – 3 years

- Applies predominantly accrual strategy

i.e. hold till maturity
Debt Mutual Funds Types

Medium Duration
- Macaulay duration of the portfolio is
between 3 years – 4 years

- Higher interest rate risk compared to

Short Duration Funds

Medium to Long Duration

- Macaulay duration of the portfolio is
between 4 years – 7 years
Debt Mutual Funds Types

Long Duration Fund

- Invest in a variety of fixed income
securities such as bonds, debentures
and government securities

- Investment strategy is a mix of both

hold to maturity (accrual income) and
duration calls (mark to market)

- Macaulay duration of the portfolio is

greater than 7 years
Debt Mutual Funds Types

Banking & PSU

- Min 80% in invested in Debt instruments of banks,
Public Sector Undertakings, Public Financial Institutions
- Invests in Securities across the Duration

Floater Fund
- Min 65% in invested in Floating rate instruments
- Interest rate risk is less affected
- Invests in securities across the duration
Debt Mutual Funds Types

Dynamic Bonds
- Investment in Bonds which is managed Dynamically

- Higher Interest Rate risk is involved

- Invests in securities across the duration

Corporate Bonds
- Minimum investment in corporate bonds- 80% of
total assets

- Invests only in highest rated instruments

Debt Mutual Funds Types

Credit Risk
- Minimum investment in corporate
bonds- 65% of total assets

- Investment in below highest rated

instruments)

- Aims to earn a few percentage points

of additional yield by investing in
slightly lower rated corporate bonds
Debt Mutual Funds Types

Gilt Fund
- Min 80% Investments in Government
securities with varying maturities

- The fund manager in long term gilt

funds actively manage their portfolio
and take duration calls with outlook
on the interest rate

- The returns of ‘long term gilt funds’

are highly sensitive to interest rates
movements
Debt Mutual Funds - Suitability
Sub Categories Scheme Characteristics Taxation
Overnight Investment in overnight securities having maturity of 1 day Debt
Liquid Maturity of upto 91 days only Debt
Ultra Short Term Macaulay duration of the portfolio is between 3 months - 6 months Debt
Low Duration Macaulay duration of the portfolio is between 6 months- 12 months Debt
Money Market Maturity of up to 1 year Debt
Short Duration Macaulay duration of the portfolio is between 1 year – 3 years Debt
Medium Duration Macaulay duration of the portfolio is between 3 years – 4 years Debt
Medium to Long Duration Fund Macaulay duration of the portfolio is between 4 years – 7 years Debt
Long Duration Fund Macaulay duration of the portfolio is greater than 7 years Debt
Dynamic Bond Investment across duration Debt
Corporate Bond Min 80% in invested in Corporate Bonds Debt
Credit Risk Min 65% in invested in Corporate Bonds below highest rated instruments Debt
Min 80% in invested in Debt instruments of banks, Public Sector Undertakings, Public
Banking & PSU Debt
Financial Institutions
GILT Min 80% in invested in Gsecs across maturity Debt
Gilt Fund with 10 year constant Min 80% in invested in Gsecs such that the Macaulay duration of the portfolio is equal to
Debt
duration 10 years
Floater Fund Min 65% in invested in Floating rate instruments Debt
Debt Mutual Funds - Taxation

Short Term Capital Gains

- Short Term Capital Gain: < 3 Year
- Short Term Capital Gain Tax Rate: As per Tax Slab

Long Term Capital Gains

- Long Term Capital Gain: > 3 Year
- Long Term Capital Gain Tax Rate: 20% with Indexation

Dividend Distribution Tax

- Dividends are taxable in the hands of unit holders at the
applicable rate as per their tax slab
Hybrid Funds

Aggressive Hybrid Fund

- These are equity-oriented Hybrid funds which invest
primarily in equity (not less than 65%), with a portion of
the portfolio invested in debt (not more than 35%) to
bring stability to the returns.
- These schemes provide investors simultaneous
exposure to both equity (to provide growth) and debt
(to provide stability or regular income) in one portfolio.
- As these funds invest 65% or more in equities, their
taxation is at par with equity funds.
Hybrid Funds

Dynamic Asset Allocation Fund (Balanced Advantage Fund)

- The fund adjusts its direct equity exposure based on
whether overall market valuations are expensive or
cheap (on the basis of price to book value).
- If the market’s price-to-book-value ratio is low, the
fund raises its direct equity exposure and relies less on
arbitrage and vice versa. Tax treatment is at par with
equity funds.
- The unhedged equity exposure can go up to 80 per cent
here based on the market condition.
Hybrid Funds

Multi Asset Allocation Fund

- Multi Asset Allocation Funds are hybrid funds that must
invest a minimum of 10% in at least 3 asset classes.
These funds typically have a combination of equity,
debt, and one more asset class like gold, real estate, etc.

- Lesser risk than most hybrid funds as the investments

are spread across multiple asset classes

- Lower allocation to stocks means the returns can fall

behind in rising markets

- Suitable for an investment horizon of at least 3 years

Hybrid Funds

Equity Savings Fund

- Equity savings funds, as a category, came into being to
provide Stable returns, while retaining equity taxation.
- Equity savings funds aim to generate returns from equities,
arbitrage trades, and fixed income securities.
- To retain equity taxation, funds will restrict the fixed
income (debt) exposure to 35 per cent.
- To reduce volatility and hedge the portfolio, these funds
actively use derivative strategies.
- The unhedged equity exposure typically ranges from 15 to
40 per cent, and the rest of the equity portfolio (40 to 15
per cent) is hedged to gain from arbitrage opportunities.
Hybrid Funds

Conservative Hybrid Fund

- Investment in equity & equity related instruments-
between 10% and 25% of total assets;
- Investment in Debt instruments- between 75%
and 90% of total assets
Hybrid Funds

Arbitrage Fund
- Arbitrage Fund leverages the price differential in the
cash and derivatives market to generate returns.
- Such funds do not take a naked exposure to equities as
each buy transaction (in the cash market) has a
corresponding sell transaction (in the derivative market).
- These funds are hybrid in nature as they have the
provision of investing a sizeable portion of the portfolio
in debt markets.
- Arbitrage funds tend to perform well in volatile markets.
- As these funds invest predominantly in equities (cash and
futures), their tax treatment is at par with equity funds.
Hybrid Mutual Funds - Suitability

Sub Categories Scheme Characteristics Taxation

Conservative Hybrid 10 - 25% in Equity related instruments & 75 to 90% in Debt instruments Debt

Balance Hybrid 40 - 60% in Equity related instruments & 40 to 60% in Debt instruments Debt

Aggressive Hybrid 65 - 80% in Equity related instruments & 20 to 35% in Debt instruments Equity

Dynamic Asset
Allocation/ Balanced Investment in equity/ debt that is managed dynamically Equity/Debt
Advantage
Multi Asset Allocation Min 10% investment in atleast 3 asset classes Equity/Debt

Arbitrage Fund Min 65% in Equity related instruments which should follow Arbitrage strategy Equity

Equity Savings Min 65% in Equity related instruments & Min 10% in Debt instruments Equity
Terminologies

Benchmark
- A group of securities, usually a market index, whose performance is
used as a standard or benchmark to measure investment performance
of mutual funds. Some typical benchmarks include the Nifty, Sensex,
BSE200, BSE500, 10-Year GSec.

NAV
- The NAV or the net asset value is the total asset value
per unit of the mutual fund after deducting all related
and permissible expenses. The NAV is calculated at the
end of every business day. It is the value at which the
investor enters or exits the mutual fund.
Terminologies

Open-Ended Funds
- are open for investors to enter or exit at any time.

Close-Ended Funds
- do not allow investors to exit during the specifies period.
Investors can buy units of a close-ended scheme only during
its NFO. The fund makes arrangements for the units to be
traded, post-NFO in a stock exchange through listing.

Interval Funds
- combine features of both open-ended and close-ended
schemes. They are largely close-ended, but become
open-ended at pre-specified intervals.
Terminologies

Systematic Withdrawal Plan (SWP)

- Systematic withdrawal plan (SWP) helps investors to redeem a
fixed amount of their investments from their mutual funds on a
pre-determined frequency. The amount withdrawn can be used
to meet planned and unplanned expenses as well as to re-invest.

Systematic Transfer Plan (STP)

- Systematic transfer plan (STP) allows investors to
transfer the pre-defined amount on a specified date
from one particular scheme to another by giving one-
time instruction to the fund house. STP is a useful tool
to take a step-by-step exposure to equities or to reduce
exposure over a period of time.
Terminologies

Growth
- Mutual Fund with growth option is similar to cumulative option. The profits
are not paid out in between, rather they keep on accumulating in the scheme.

Dividend / IDCW (Income Distribution cum Capital Withdrawal)

- Here part of profit/gain is paid out on a periodic basis in the
form of dividend. This option is recommended to retires or to
investors looking for regular income from their investments.
The NAV of the scheme will go down in tandem with the
dividend declared, as the profits are paid to investors.

Dividend Reinvestment
- Under dividend reinvestment plan, the dividends are not
passed on to investors in the form of money. But the
money is used to buy extra units of the scheme.
Concepts

Price
- Price of a company’s stock is market driven. It
fluctuates based on demand & supply of the share.

Earning Per Share (EPS)

- EPS = (Profit after tax) / (Number of outstanding shares)

Market Capitalization
- Market Capitalization = Total no. of shares * Current market price
Concepts

Price to Earnings Ratio (PE)

- PE ratio = Price / EPS;
This helps to understand the valuation of a company.
- Index PE = Index/Index’s EPS;
This helps to understand whether the market is trading at
a higher PE (overvalued) or lower PE (undervalued).

Book Value
- Book Value = Total assets – intangible assets – liabilities;
- Book value refers to the total amount a company would
be worth if it liquidated its assets and paid back all its
liabilities.
Concepts

Price to Book Value

- PB or Price to Book Value = Price / Book value; Higher the PB,
costlier the price is; Lesser the PB more attractive the price is.

Debt Markets
- Debt market instruments can be categorized as follows:
- Govt. Securities Market (Dated securities)
- Corporate Bond Market (Coupon bearing bonds, zero
coupon bonds, floating rate bonds, debentures etc.)
- Money Market (T-Bills, Commercial Papers, Certificate of Deposit),
Returns of debt funds are a combination of
- Coupon Accrual (Strategy applied: hold till maturity) &
- Mark to Market gain (Strategy applied: duration calls).
Concepts

Weighted Average Maturity

- Weighted Average Maturity tells us how sensitive a bond
fund's NAV is to change in interest rates. Funds with
higher avg. maturity are supposed to be more volatile.

Modified Duration
- Modified Duration helps us in measuring the sensitivity of
the bond fund’s NAV to interest rate movement. So, if
modified duration of a fund is 10 years then if interest
moves up by 1%, the NAV of fund will move down by 10%.

Intrest Rate <-> Prices

- When interest rate increases, bond prices decrease.
What is Financial Planning?

Financial Plan
- gives you a top-view or a bird’s-eye-view
of your financial state which includes
your INCOME, EXPENSES, ASSETS,
LIABILITIES, INSURANCES and GOALS.
Benefits of Financial Plan

Provides a Roadmap
- Financial Plan tells us when, how and
what amount of money will be required
to fulfil our goals.
Investments Become Purpose-Led
- When we know what investment is for
what – then we become more disciplined
and focused.

Easy to Review
- Based on goals, we know what to look for
from an investment and review
accordingly.
How is Financial Planning done?

Prudent Compass & Fundzbazar Goal Planner

- At Prudent you can create a Financial Plan
online using Prudent Compass and
FundzBazar Goal Planner

- You can also create Financial Plan offline

using Excel calculators (available under
‘Download’ section of Partner Desk) -
Quick Financial Plan, Comprehensive
Financial Plan and Investment Calculators
Case Study – 1 (Portfolio Design)

Case
- Mr. Ravi is 50 years old. He has Rs. 50 lakhs to invest.
He wants you to create a portfolio of different MF
schemes. If there is no emergency then Mr. Ravi would
like to stay invested in the portfolio for next 7 years at
least.
Case Study – 1 (Portfolio Design)

Solution
- Preferably you must first do ‘risk profiling’ for Mr. Ravi.
This way you will come to know about his preferences
and accordingly design the portfolio with right mix of
risk and return expectation.
- As per the risk assessment done, design a portfolio
with 3-5 number of schemes of equity oriented (for
Aggressive Risk Category), medium to long-term debt
oriented (for Conservative Risk Category) or of
aggressive hybrid type (for Moderate Risk Category).
- Review portfolio at regular intervals & take necessary
actions whenever required.
Case Study – 2 (Middle aged, salaried)

Case
- Mr. Ajay is 40 years old. His wife Shruti is 35. Their
children Riya and Rehan are 17 and 12 years old
respectively. Mr. Ajay’s monthly surplus is Rs. 30,000.
He wants to save for his retirement days as well as for
his children’s higher education and marriage.
Case Study – 2 (Middle aged, salaried)
Solution
- Types of recommended MF schemes can be debt,
hybrid or equity depending on tenure of goals,
like short term (0 – 1 year), medium term (1 – 3
years) and long term (>3 years) respectively.
- Review his goals and investments at regular
- intervals.
For his retirement goal, investment strategy will
be
SIP till retirement age. Thereafter SWP till his life
-
expectancy age.
Here, we designed the portfolio based on
investment horizon or goal tenure and not on Risk
Profile. Thumb rule here is - if investible surplus
amount supports required investment based on
Case Study – 3 (Young and salaried)

Case
- Mr. Harsh is 27 years old. He is unmarried and
working in an IT company. He is planning to get
married in next 1 year. He is also planning buy a
house within next 2-3 years. Currently Harsh is
saving most of his salary amount as he is staying
with his parents.
Case Study – 3 (Young and salaried)
Solution
- Mr. Harsh should start saving the entire surplus amount.
- A bigger part of his surplus amount should be saved in liquid
and ultra short term funds as few of his goals (marriage
expenses, home loan down-payment) are immediate and
uncertain.
- Tell Mr. Harsh the importance of making SIP investment
in equity mutual fund to accumulate wealth for retirement
goal and also explain the benefits of starting early.
- Review his goals and investments at regular intervals.
Case Study – 4 (Retired)

Case
- Mr. Narayan is retired. He is having a corpus of Rs.
1.50 crore. This corpus is divided into different
types of assets including bank FD, PPF, Post Office
savings, shares, mutual funds etc. He wants to be
assured that he gets regular monthly withdrawals
(inflation adjusted) till his lifetime and manages to
fund unexpected random expenses.
Case Study – 4 (Retired)
Solution
- Prepare a cashflow projection for Mr. Narayan assuming
life expectancy age, inflation and likely portfolio returns.
- Depending on the output of the cashflow – recommend Mr.
Narayan whether he should consider reducing his monthly
expenses or should he reshuffle his portfolio.
- Park part of the corpus in short duration debt funds or
hybrid funds (with less volatility) and start SWPs from
these schemes. Rest of the corpus amount should be
invested in equity, medium to long term debt or aggressive
hybrid funds and to be shifted
to funds marked for SWP at regular intervals.
-
Review Mr. Narayan’s portfolio at regular intervals.
Case Study – 5 (Middle aged businessman)

Case
- Mr. Rakesh, 45 years old, is a businessman. His
yearly average income stands at Rs. 20 lakhs. His
monthly incomes are not fixed and also uncertain.
His daughter is 15 years old. He wants to
accumulate enough corpus to fund his daughter’s
higher education and marriage. Though he wants to
work throughout his life but that should become
optional after age
Case Study – 5 (Middle aged businessman)
Solution
- To fund his daughter’s higher education and marriage he
should invest as much as possible. Investment can be done
through lump-sum or through additional purchase.
- Depending on horizons of different goals recommend him
schemes. As SIP may not be feasible in his case (as income is
irregular), STP can be used to manage volatility at times.
- Calculate his retirement fund requirement and recommend
him schemes – mostly in equity category.
- Considering his long working life, term of his life insurance
plan should be long enough. Sufficient health insurance
cover for both the spouse is also highly recommended.
-
Review Mr. Rakesh’s portfolio at regular intervals.
Objection Handling (Concern 1)

Client
- Equity markets are risky, I want
safety first. My bank FD is giving
me 6% guaranteed return then
why should I invest in equity?

Advisor
- Sir, what do you think is more important – preserving
the capital or preserving the purchasing power? The fact
is that in last 35 years CPI inflation alone has eroded
purchasing power of rupee by more than 90%. Lifestyle
inflation is even higher than that. Net of tax return from
investment asset should beat inflation at least
Objection Handling (Concern 2)

Client
- Market is very high. It should correct.
I will wait for the correction. (Or, market
has corrected and it will correct further. I
will wait till the things get settled down.)

Advisor
- We cannot time the market but we can surely spend time in the
market. Historically it has been seen that those who stayed
invested with their investment have made big fortunes.
Systematic approach (SIP or STP) further protects us from
volatility and in fact gets benefitted out of it. Major returns in
equity market is delivered in few days. By constantly trying to
time the market, chances of losing those few days are very high.
Objection Handling (Concern 3)

Client
- Mutual fund returns are not consistent. It goes
up and down along with the market. How can
I then invest into mutual fund for my critically
important goals or if I require the money
anytime without worrying of capital loss

Advisor
- Mutual fund is not all about equity. There are mutual funds,
known as debt schemes, which invest into bonds, NCDs,
certificate of deposits, G-Sec, T-Bills etc. When a goal is
nearby you can then move your investment into such
schemes. Depending on your horizon and risk appetite you
can choose different type of equity or debt schemes.
Form Filling

Form Filling (Common Application Form)

- Mention Prudent ARN code (9992)

- Write your ARN code, sub broker code and EUIN

- Next, write investors’ name, date of birth and address

as per KYC details

- If it is additional purchase you have to mention folio

number

- Investors status, occupation details, mode of holding

& annual income has to be ticked compulsorily

- Fill all FATCA related details in the same form

Form Filling

Form Filling (Common Application Form)

- Mention bank a/c details and investment details
- Fill nominee related details. In case of a single holder
mentioning ‘Nominee’ is mandatory
- Last is taking clients’ signature on declaration
- One month period is required for SIP registration Choose
SIP date as per the norms, ensure that Start Date & End
Date are also mentioned correctly in the same

- Over writing or whitener is not allowed on NACH form

- On NACH form, don’t write anything against UMRN,

Sponsor Bank Code and Utility Code
FundzBazar

FundzBazar
- Its an online investment platform created to
simplify investing in mutual funds
- Complete paperless transaction facility for
SIP, Purchase, Switch, Redemption etc
- Invest, Manage and Track all investments of
one family under single login
- Transact anytime, anywhere through
FundzBazar Mobile App
- Register and invest online for Individual,
Minor, NRI, HUF
Mutual Fund Industry AUM Growth in India
35,000.0

Mutual fund assets under management (INRb) 31,427

30,000.0

25,000.0 23,795

21,360

20,000.0 22,262
17,546

15,000.0
12,328
10,828

10,000.0 8,252
7,025
6,140 5,923 5,877
5,052
4,173
5,000.0

1,218
0.3 46 470
-
FY65 FY87 FY93 FY03 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21

Source: AMFI (as on 31st March 2021)

Classification of Individual Wealth in India

Fixed Deposits & Bonds 48,691

Insurance 38,020

Saving Deposits 37,455

Direct Equity 36,115

Cash 23,497

Provident Fund 20,438

Unlisted Equity 13,032

Mutual Funds 11,909

NRI Deposits 10,326

Small Savings 9,836

Pension Funds 9,017

Current Deposits 2,118

Alternative Investments 2,000 Classification of Individual Wealth in

India based on Financial Assets in FY20
International assets 458

Source: Karvy India Wealth Report, 2020. All amounts are in Rs. Billion
Share of Asset Classes out of Total Individual Wealth

Fixed Deposits & Bonds 18.52%

Insurance 14.46%

Saving Deposits 14.25%

Direct Equity 13.74%

Cash 8.94%

Provident Fund 7.77%

Unlisted Equity 4.96%

Mutual Funds 4.53%

NRI Deposits 3.93%

Small Savings 3.74%

Pension Funds 3.43%

Current Deposits 0.81%

Classification of Individual Wealth in
Alternative Investments 0.76% India based on Financial Assets in FY20
International assets 0.17%

Source: Karvy India Wealth Report, 2020

AUM to GDP Ratio – Global Perspective
140%

120%
120%

100%

81% 80%
80%
68% 67%
63% 63%
60%
48%
40%
40%
32%

20% 13% 12%

0%
US Canada France Brazil UK World Germany South Africa Japan Korea China India

Note: Aum data as of Q4 of calendar year 2019 for all countries. Only open- ended funds have been considered. Includes,
equity, debt and other.GDP is based on current prices estimation by IMF in the world economics outlook, July 2019