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Copyright 2012 by Sophia Shen Publishing. All rights reserved. Created in the Canada. Except as permitted under the Canada Copyright Act of 1976, No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means electronic or mechanical or by photocopying, recording, or otherwise without the prior permission of the publisher. The views expressed in this book are solely those of the Authors, and do not represent the views of any other party or parties. Created in Canada UPC: 6-43977-21101-8 The sponsoring editor for this book was Sophia Shen and the production supervisor was still Sophia Shen Formatted by Sophia Shen Authors: Sophia Shen and the help of online sources This publication is not sponsored by, endorsed by, or affiliated with any online sources or other people’s work that I was not supposed to use, in another word, I did not plagiarize! All other trademarks are trademarks of their respective owners. Throughout this book, trademarked names are used. Rather than put a trademark symbol after every occurrence of a trademarked name, we used names in an editorial fashion only and to the benefit of the trademark owner. No intention of infringement on trademarks is intended. This publication does not constitute an endorsement of any mentioned product by the authors.

table of content word from author..........2 fundamentals of mutual fund ............3 example of equity fund .................4 UTI master value fund ..........5 manager’s investment style........................6 UTI master value fund info......................7 load option. ....................8 to invest ........................................9 transferability........................10 other info.....................10

word from author As people begin to progressively age, the size of their wallet will start to fatten. However due to factors such as inflation, just simply keeping the money in the bank will ultimately lessen the value of your money to the point of worthlessness. Putting money in investment looks like favourable alternate for money, but if done wrong, one could lose all the money they have made through hard work. That is why this book is here for you. This book will teach you how to invest in mutual funds starting from a young age, and give you ideal mutual funds to invest in. I hope that after reading this book, you will be able to investment in ideal mutual funds and make great profit. Enjoy!

Sophia Shen

fundamentals of mutual funds Over the last 20 years, mutual funds have started to grow in popularity. Now, more than 80 million people invest in mutual funds. Mutual funds are heralded as a way for everyone to get a piece of the market without needing to spend much time analyzing and focusing on stocks. A mutual fund is just a collection of stocks and/or bonds. To invest in a mutual fund, you invest a certain amount of money into a pool of money, and a fund manager with use the money to invest in the stock market. There are three ways to make money with mutual funds: 1) Income is earned from dividends on stocks and interest on bonds 2) If the fund sells securities that have increased in price, the fund has a capital gain, and the most funds also pass on these gains to investors in a distribution 3) If fund holdings increase in price but are not sold by the fund manager and the fund’s shares increase in price, you can then sell your mutual fund shares for a profit

what is an equity fund

As a young and inexperienced investor, one’s ultimate option is to put money in mutual bonds to let professional investors make the best choices of where to allocate the money. The young investor will not need to consistently keep eyes and on the market trends, and worry about investing in the wrong stocks due to the lack of investing knowledge. Out of all the mutual funds to invest in, the most suitable type for young grade nine students to invest in is equity funds due to several of reasons. Equity mutual funds are mainly based on capital appreciation, and one makes income through dividends and stability through broad diversification. This type of mutual fund is also rather long term in comparison to the other types. This suits ninth graders because they have no particular need for the money in the short future; therefore they are able to leave the money in the fund for a longer period of time. In addition, at a young ager, one is more risk taking and have the chance to be taking riskier investments because he does not urgently need the money as his parents are still supporting him. The equity funds also potentially give larger returns in comparing other type of funds. This favours young investors since young person are more ambitious to be rich.

example of an equity fund UTI Master Value Fund UTI Master Value is a great equity fund for the ninth grade investor to put his money. This fund is one of the best funds in India and shows great return over the long period of time rather than short. This gives space for growth for ninth grade students who do not need their money immediately after investing. UTI Master Value is an open-ended equity fund investing in stocks which are currently under valued to their future earning potential and carry medium risk profile to provide ‘Capital Appreciation’. This fund’s objective is capital appreciation through investment in stocks that are relatively undervalued to their expected long term earnings growth The fund will utilize in-depth fundamental research to evaluate factors such as a company’s financial structure, its competitive position in the market and its management’s commitment to increasing shareholder value while selecting the universe of stocks for investment by this fund.

UTI master value fund

There are no values for the 10 year returns


IDFC Premier Equity Fund - Plan A (G)


Franklin India Index Fund

In comparison to another equity fund, IDFC Premier Equity Fund, UTI Master Value Fund shows slower and less return in all 1, 3, and 5 year return on the fund. However, comparing to the Franklin India Index Fund, UTI Master Value Fund has higher returns in the 3 and 5 year returns, but slightly lower in the 1 year return.

manager’s investment style

UTI Master Value Fund’s investment manager is Mr. Anoop Bhaskar, who is a B.Com graduate from Delhi University and a MBA graduate in Finance from SIBM, Pune. He has over 16 years of experience in the Finance and Research. He has worked with with Sundaram Asset Management, Chennai as Head-Equity, Templeton Asset Management as Senior Research Analyst, Shriram Financial Services Ltd. as Manager-Investments, Brisk Financial Services and Cross Borders Finance & Project. He has assumed the role of Head- Equity at UTI AMC since April, 2007. In 2003, Bhaskar decided to move on to Sundaram when was the start of this great bull market. He has always focused on mid-caps because he gained some experience of how these companies would shape up over his working years. In UTI Master Value Fund, Bhaskar seeks to buy stocks with dividend yields higher than the yield on S&P CNX Nifty index. The fund’s objective is to seek capital appreciation, not necessarily dividends and therefore, Bhaskar also invests 35% of the fund’s corpus in low dividend yield stocks for example Infosys Technologies and Sesa Goa. Bhaskar does not take on high risk stocks to guarantee some revenue and profit, which makes UTI Master Value Fund a “below average” risk fund.

management expense ratio 2.18%

UTI master value fund info

load options There are two different load options, one where one has to pay 1% exist load and no entry load when investing less than a year, and other where one does not need to pay load fee at all when investing a year or more. The better option is obvious the one without load. UTI Master Value Fund is a long-term investment fund to begin with, meaning that it is difficult to make much of a profit in less than a year. By investing for over a year, one will make more profit and avoid the load fee.

to invest


1) To purchase the fund, go on to the website: 2) Choose EQUITY option under the category section, and “UTI Masters Value Fund� under the scheme 3) Select UTI - MASTER VALUE FUND GROWTH PLAN-Growth (minimum investment of 5000.00 rupees) 4) Fill in the application form and set the amount wish to be purchased and payment methods ($2500 = 134325.0000 Indian rupees) 5) Make sure to include all billing and debit/credit card information, and the right personal information 5) Monitor the fund frequently manually as there is no monthly set up plan

UTI master value fund prospectus

transferability UTI funds can be transferred after the lock in period of three years from the ‘date of acceptance’. This means that the fund is rather hard to transfer within the fund family. The transferability of the fund concerns the investor because if whenever an investor realizes that he/she has different needs in life, he might want to transfer to a different type of fund, however from the same family if the company is doing well. This shows a change in one’s investment objectives. In addition, one may want to transfer the funds from one type to another to diversify one’s portfolio. Futhurmore, the investor can eventually lose the interest of their current mutual fund and be interested in other ones in the family, and transferability gives the investor a chance to make the change.

other info

UTI Master Value Fund is one of the biggest and most successful fund in India, however instead of entirely trading in rupees, much of it is traded on in USA dollars, showing that there is a market in North America. UTI Master Value Fund is a fantastic long-term investment with wonderful 5-year return percentages. This gives young investors not too much need to constantly inspect over the funds and worry about the return. Since grade 9 students will not need the money in short time period, long-term investments are very desirable. However in comparison to UTI Master Value Fund’s competitors, the fund just falls below the other fund’s yearly return rates. Nevertheless the fund is still very stable and have potentials for high returns. From many different reviews from both investors in this bond and advisors, they agree that UTI Master Value show great return, and gives great satisfaction. In addition there have been many compliments on UTI’s customer service.

Mutual Fund Assignment  

sophia shen's financial security mutual fund assignment