Presentation on theme: "1 P N VIJAY FINANCIAL SERVICES MUTUAL FUND ADVISORY."— Presentation transcript:
1 P N VIJAY FINANCIAL SERVICES MUTUAL FUND ADVISORY
2 CONTENTS – About PNVF – Mutual Fund: An Introduction – Mutual Fund Advisory Services – Service Features
3 ABOUT US Promoted in May 1990, PN Vijay Financial Services (P) Ltd (PNVF) is a SEBI-Authorized Portfolio Manager. P N Vijay, the promoter of PNVF is a well known Investment Analyst with an experience of over 30 years in the financial sector. Started career at SBI, moved on to ANZ Grindlays, and served as VP and Country Head, Merchant Banking at Citibank.
4 QUESTIONS BEFORE INVESTING EQUITYDEBT WHICH SECTORS, WHICH COMPANIES, HOW MANY COMPANIES TO HOLD, HOW MUCH TO INVEST IN EACH COMPANY HOW TO TRACK AND TACKLE INTEREST RATE RISK AND CREDIT RISK Client need time, expertise and information to answer these questions. But most of the times we are short of all these resources. He need someone who is professional and possess all the resources. And the answer is……
5 MUTUAL FUNDS: ONE STOP SHOPPE The “ THREE R ’ s ” of mutual funds make them preferred investment avenue over direct investment in stock markets and fixed income investments. MUTAL FUND RETURNS RISK REBATE
6 MUTUAL FUNDS: ONE STOP SHOPPE Wide range of products to choose from including Liquid funds Debt funds Equity funds Monthly Income Plan (MIPs) Fixed maturity Plans (FMPs)
7 MUTUAL FUNDS:ONE STOP SHOPPE... EQUITY SCHEMESDIRECT EQUITY DiversificationAdequate diversification to mitigate risk and reap benefits from all sectors Don ’ t know: How to diversify and how much to diversify Real Time Information Close to market and can timely action Lack of information: most important factor in investment ResourcesUses databases and software designed specially for managing investments Either no or little resource TimeManaged by professionalsIndividuals do not have time to keep a track of their investments.
8 MUTUAL FUNDS:ONE STOP SHOPPE... DEBT SCHEMESG-SEC and CORPORATE BONDS Interest Rate Risk and Market Risk Manages things like maturity, duration etc. to keep risk at lowest level. Subject to risks which can erode capital LiquidityEntry and Exit is simple.Only G-Secs and AAA rated corporate bonds have high liquidity. Quality of Investment Invest primarily either in G- Sec or AAA rated companies. Investors usually don ’ t have access to quality paper and end up investing in low grade bonds. Lot SizeInvestor can start investments with as little as Rs G-Sec has a minimum lot size of Rs. 5 crores.
9 MUTUAL FUNDS:ONE STOP SHOPPE... FIXED MATURITY PLANS (FMP) FIXED DEPOSITS, PUBLIC DEPOSITS Interest Rate Risk and Market Risk Actual return is almost as same as indicated at time of investment as returns are insulated against interest rate changes. Interest rate changes affect the actual returns earned at end of term Penalty on pre- maturity A nominal exit load is deducted on withdrawing funds before maturity Penalty is charged on the basis of time left to maturity. Tax BurdenInvestor can enjoy “ Double Indexation Benefit ” to reduce their tax burden substantially. FDs and PDs are subject to TDS at rate depending on investors. Thus, effective returns turns out to be very low because of TDS.
10 IN BRIEF …..
11 BUT THERE ARE NO FREE LUNCHES ….. Investment and risk go hand in hand and so is with Mutual Funds Equity Funds - uncertainty in the stock market - competence of fund managers Debt Funds -movements in interest rates -inflation and the state of the economy
12 THE SOLUTION FROM PNVF now offers a product that will manage and monitor your mutual fund portfolio Minimizing risk and MAXIMISNG RETURNS P N V F
13 Why PNVF…… quality flexibility expertise trust Investing is very rewarding … But you need a partner who understands the intricacies of the market.
14 WHY US We are a specialized research driven company with Corporate Office in New Delhi and a network of three branches at Noida,Greater Kailash II and Gurgaon. Qualified professionals well versed in latest techniques of investment analysis. Latest communication and automation systems with access to real time data. Close links with Corporates and leading market players.
15 How It Works-Initial Stage Client define his investment goals We design a mutual fund portfolio based on his investment objectives. We will implement the agreed upon strategy to optimize his portfolio returns.
16 How It Works-Continuous basis Continuous monitoring of the performance and progress of portfolio. Regular monthly reporting. Refine strategy if required and portfolio rebalancing.
17 INVESTMENT TOOLS We use latest tools and techniques to evaluate and select mutual fund schemes. Various schemes are compared on two parameters Returns and Risk.
18 RETURNS Various schemes are grouped in different categories and their performance is seen across various time periods i.e 1month,3 mth 6 mth, 1 yr,2 yr and 3 yr. RISK Measures such as Standard Deviation, Beta, Sharpe ratio, Downside Risk ratio are used for ascertaining the risk associated with the schemes.
19 Taxation- Equity Schemes Dividend income is tax free in the hands of investor. Short term capital gains is taxed at 10%. Long term capital gains attract no tax.
20 Taxation- Other Than Equity Schemes The dividend is fully tax exempt in the hands of investor. Dividend distribution tax at the rate of 14.02% is deducted by Mutual Fund Houses. Long term capital gains are taxed at the rate of 20% with indexation and at 10% without indexation. Short term capital gains to a unit holder is taxed at the normal rate applicable to the unitholder.
21 We realize your money matters to you. It does for us too. We are committed to do our utmost so that you get the best out of it.