Download pdf - Comic 12mar12

7/30/2019 Comic 12mar12

1/29

An Easy Introduction

Mutual Fund investments are subject to market risks, read all scheme related

documents carefully.

Please refer to page number 28 for detailed Risk Factors.

Date:- 5th March, 2012

7/30/2019 Comic 12mar12

2/29

MUTUAL FUNDS -AN EASY INTRODUCTION1

THERE WAS MUCH EXCITEMENT IN THE KUMAR HOUSEHOLD.

She is still a

kid Akshay!

HOW QUICKLY SHE'S

GROWING UP, DIVYA. WE

HAVEN'T DONE ANYTHING TO

SECURE HER FUTURE.

WHAT ARE YOU

THINKING ABOUT,

AKSHAY?

HMMMMM....

IT'S PREETI'S

BIRTHDAY TODAY !

She was 5 monthsold, when wemoved to this

Place.

An Easy Introduction

She is five Years

old now. Time

Flies.

7/30/2019 Comic 12mar12

3/29


ARE THERE ANY OTHER

INVESTMENT OPTIONS

AVAilABLE THAT GIVE

HIGHER RETURNS?

LETS START A LIFE

INSURANCE POLICY IN HER

NAME. THAT WILL GIVE

GUARANTEED RETURNS.

THAT'S JUST NOT

ENOUGH! I'M THINKING OF

INVESTING THE MONEY

SOMEWHERE SO WE GET

BETTER RETURNS FROM

OUR SAVINGS.

SO WHAT DO YOU

SUGGEST?

IT'S IMPORTANT,

DIVYA. WE NEED TO

DO SOMETHING

ABOUT IT NOW !

WE HAVE ALREADY

OPENED A SAVINGS

ACCOUNT IN HER NAME.

7/30/2019 Comic 12mar12

4/29

RAHUL AND HIS PARENTS ARE THEIR

NEIGHBOURS AND GOOD FRIENDS.

OKAY. LETSSPEAK TO RAHUL

AND HISPARENTS WHEN

THEY COME OVERFOR DINNER.

TONIGHT.

THAT NIGHTDIVYA TELLS MEYOU WANT TO

START

INVESTING FORPREETI.

MAY BE... BUT WESHOULD AT LEAST

CHECK ALL THEOPTIONS BEFOREINVESTING OUR

MONEY.

BUT WE HAVENT EVEN BEGUNINVESTING!! LETS START

INVESTING AND THEN WE CANEXPERIMENT.


Something likeStocks andShares??

7/30/2019 Comic 12mar12

5/29

THAT'S RIGHT,RAJESH UNCLE... ...BUT WE

JUST DON'TKNOW

WHERE TOBEGIN.

BUT ISN'T THAT TOORISKY? I WAS LOOKINGAT SOMETHING MORESECURE FOR PREETI.

BUT WITH GOODRETURNS.

MUTUAL FUNDS, MYDEAR! MUTUAL FUNDS

IS THE ANSWER.

IT IS RATHERCONFUSING. INITIALLY IHAD THE EXPERT ADVICEOF MY FATHER TO GUIDEME. AND STARTED WITH

THE STOCK MARKET.


7/30/2019 Comic 12mar12

6/29

A Mutual Fund is a smart investmentscheme wherein a fund house collectsmoney in exchange from investors FORUNITS OF THE FUND AND IN TURN INVESTSTHE MONEY SYSTEMATICALLY IN EITHER

STOCKS OR THE DEBT MARKET ORCOMMODITIES like gold.

SO IS IT LIKE ACHIT FUND!

but is it SAFE TOINVEST IN A MUTUALFUND?

MUTUAL FUNDs?why mutual

funds??

NO, NO, DIVYA! MOST FUND HOUSES AREREPUTED FINANCIAL INSTITUTIONS WITH

QUALIFIED FINANCIAL ANALYSTS ASFUND MANAGERS WHO WILL MANAGE

YOUR SAVINGS.


I believe theyare. I have beeninvesting in them

for ten yearsnow.

7/30/2019 Comic 12mar12

7/29

THE NEXT DAY-

PLEASE HAVE ASEAT.

THESE ARE MY FRIENDS,DIVYA AND AKSHAY.MEET parimaan, THE

Investment Expert WESPOKE ABOUT.


CAN WE SEE HIMTOMORROW

itself ?

Hey! I think both ofyou should meet my

friend who is aninvestment expert.

Hell answer all yourquestions.

That soundslike a good

idea.

7/30/2019 Comic 12mar12

8/29

THAT'S RIGHT.

PHEW!

OKAY, LET ME SIMPLIFY THAT.

LET US ASSUME YOU WANT TO

SAVE FOR PREETI'S EDUCATION..SAY..TEN YEARS DOWN THE

LINE. ASSUMING HER COLLEGE

FEES IS FOUR LAKH TODAY, IT

COULD WELL DOUBLE.

SO IN TEN

YEARS , HER FEES

COULD BE EIGHT

LAKHS

WOW! SO WHAT

SHOULD WE KEEP

IN MIND WHENWE INVEST?


RAHUL TELLS ME YOU WANT TO

INVEST FOR YOUR DAUGHTER'S FUTURE.

THAT'S RIGHT.

Its good that you have

recognised that you need to

invest. IN FACT IF YOU BREAK

IT DOWN FURTHER FOR HER

EDUCATION OR HER MARRIAGE

IT 'LL BE EASIER FOR US TOMAKE THE RIGHT INVESTMENT

CHOICES.

But if you start investing

some amount every month

in a mutual fund, you can

easily meet that expense in

a few years time

7/30/2019 Comic 12mar12

9/29

FIXED

DEPOSITS

FIXED

DEPOSITS

N.S.C

YES ! IT ALL DEPENDSON WHAT KIND OFRISK YOU LIKE TO

TAKE ON YOURINVESTMENTS.

INVESTMENT PHILOSOPHY

AND REMEMBER,NEVER PUT ALL YOUR

EGGS IN ONEBASKET...

HIGH RISK - HIGH RETURNS MEDIUM RISK - MEDIUMRETURNS

PPF

LOW RISK - LOWRETURNS

ONCE YOU KNOW YOUR INVESTMENT PHILOSoPHY, Theninvest in those areas which reflects your philosophy.


THE KIND OF RISKYOU LIKE TO TAKEWHILE INVESTINGDETERMINES YOUR

INVESTMENTPHILOSoPHY.

7/30/2019 Comic 12mar12

10/29

HMM...SO WHERE DOMUTUAL FUNDS COMEINTO THE PICTURE?

AH !

IS THISMAKINGSENSE?

Mutual funds are versatileinvestment instruments,

which can suit yourinvestment objectives, butwhile investing you need to

recognise the inherent riskinvolved in them.


YOU NEED TO PUT YOURMONEY IN STOCKS,

BONDS, GOLD,PROPERTY ETC. IN LINEWITH your INVESTMENT

PHILOSPHY.

As an investor in mutual fundsyou need to recognise, which

category of mutual funds bestsuits your need - be it regularincome, capital appreciation or

safety of principal.

7/30/2019 Comic 12mar12

11/29

TYPES OF MUTUAL FUNDS BASED ON CATEGORY

These funds attemptto maintain a balancebetween fixedincome securities and

equities in apredetermined ratio;

for example65 (equity):35 (debt).

DEBT FUNDS EQUITY FUNDS

The investment focus

here is on stocks andshares and the fundsaim to grow money

over a longperiod of time

(capital appreciation).

BALANCED FUND


These funds invest infixed incomesecurities like

debentures & bonds,and aim to preservecapital but need notnecessarily provide a

regular source ofincome to the investor.

Equity fundsprovide higher

returns, but

expose you tohigher risk as well,

as compared to

balanced funds

and debt funds.

7/30/2019 Comic 12mar12

12/29

SO WITH MY

OBJECTIVES IN MIND,

I SHOULD PROBABLY

CHOOSE AN EQUITY

FUND, RIGHT?

BUT TELL ME, CAN'T I

JUST INVEST IN

STOCKS MYSELF?

...STOCK PRICES RISE AND

CRASH. THEY NEED TO BE

MONITORED ALL THE TIME.

WHICH MEANS FOR

AROUND TEN YEARs, YOU

SHOULD INVEST

REGULARLY AND WATCH

YOUR MONEY GROW.

OF COURSE YOU

COULD. BUT STOCK

MARKETS ARE VERY

VOLATILE.


RIGHT! investment that

focus on Stocks HAVE

OUTPERFORMED OTHER

ASSETS LIKE FIXED DEPOSIT,

REAL ESTATE, GOLD. ETC

OVER THE LONG TERM.

7/30/2019 Comic 12mar12

13/29

WHEN YOU INVEST

IN A MUTUAL

FUND....

STOCK ABC STOCK XYZ

STOCK FMG

STOCK

BEST BUY

STOCK

DOING WELL

THIS FUND

MANAGER HASTO BE VERY

GOOD.

ABSOLUTELY!

.... THERE IS A QUALIFIED and EXPERIENCED FUND MANAGER

TO MANAGE YOUR MONEY....

Who invests in well researched and

diversified stock portfolio.

THERE WILL BE A LARGE NUMBER OF STOCKS SO THAT YOU CAN BENEFIT FROM

DIVERSIFICATION.


FUNDSPORTFOLIO

7/30/2019 Comic 12mar12

14/29

It is important to

read and

understand the

investment

objectives very

carefully, before

investing in any

fund.

HERE TOO THE FUND

OBJECTIVES MUST BE IN

LINE WITH OURS; AM I

RIGHT?

and That correct!

YOU ARE HALF-WAY TO

BECOMING AN EXPERT

ALREADY!

WHAT SHOULD A FUNDS OBJECTIVE REVEAL?


JUST LIKE YOU HAVE INVESTMENT

OBJECTIVES, EVERY MUTUAL FUND

TOO HAS A DISTINCT INVESTMENT

OBJECTIVE.

THE KIND OF INVESTMENTS THE FUND WILL MAKE.

THE FUND MANAGER'S AREA OF OPERATION.

WHAT KIND OF RETURNS AN INVESTOR CAN EXPECT?

A CLEARLY DEFINED OBJECTIVE SHOWS THE FUNDS

COMMITMENT ON ITS PART.

7/30/2019 Comic 12mar12

15/29

NOW THAT WE'VE UNDERSTOOD OUR

INVESTMENT PHILOSOPHY AND INVESTMENT

OBJECTIVE, CAN WE START WITH A FUND

SUITED TO OUR NEEDS?

SURE!

BUT FIRST

YOU SELECT THE FUND

HOUSE WHICH IS ALSO

CALLED THE ASSET

MANAGEMENT

COMPANY (AMC).

CAN'T WE JUST SELECT

THE MUTUAL FUND?

WELL, IT IS LIKE THISIF YOU WERE CHOOSING A

GROOM FOR YOUR DAUGHTER, YOU WOULD FIRST

CHECK THE CREDENTIALS OF THE FAMILY BEFORE

GETTING THE GROOM TO MEET HER, WOULDN'T YOU?


7/30/2019 Comic 12mar12

16/29


THIS PUTS IT IN PERSPECTIVE!

FUND HOUSE CHECKLIST

Background: Who are the fund

sponsors? How reputed are they? Overall Performance ofthe fund house.

Track Record: Check the

performance of the other

mutual funds from the same

fund house especially those

managed by the same fund

manager who's looking after

the one you are interested in.

sponsors

sponsors

SELECTING A FUND HOUSE

IS LIKE SELECTING A

FAMILY. IT HAS TO BE

CHOSEN WITH CARE .

CHECK THE FOLLOWING

WHEN YOU REVIEW AFUND HOUSE.

7/30/2019 Comic 12mar12

17/29

NOW WE CAN CHOOSE THE

GROOMOOPS, I MEANT

THE FUND!

IT IS ALMOST AS RIGOROUS AS

CHOOSING A GROOM!

INVESTING IS SERIOUS

BUSINESS: AFTER ALL IT IS YOUR

HARD-EARNED MONEY! You

should take time to research

and analyse before investing.

COMING BACK TO THE RIGHT

mutual fundYOU HAVE

WON HALF THE BATTLE BY

IDENTIFYING THE RIGHT

FUND HOUSE, NOW YOU

NEED TO CHECK WHICH OF

ITS funds MATCHES YOUR

OBJECTIVES.

I'M GLAD YOU LOOK AT IT

THAT WAY , AKSHAY. MANY

PEOPLE TAKE SHORT CUTS

BY TAKING TIPS FROM HERE

AND THERE BUT THAT COULD

PROVE EXPENSIVE, AS ONLY

YOU KNOW WHAT YOU NEED.

Each investment demands a

unique approach and

mindset. There are different

schemes catering to

different objectives and

the investor must select

the fund which meets his

objective.


7/30/2019 Comic 12mar12

18/29

INVESTMENT

OBJECTIVE

Short term investing

Capital appreciation

Regular income

Tax saving

INVESTMENT

HORIZON

1-6 months

Over 3 years

Flexible

3 year lock-in

IDEAL

INSTRUMENT

Liquid/short-term plans

DiversifiedEquity/Balanced funds

Monthly incomeplans/Income funds

Equity Linked SavingsSchemes (ELSS)

ALSO. THEN YOU NEED TO CHECK IF

Capital Appreciation

Regular Income Monthly income plan has declareddividends consistently every month.

.AND SO ON

IF YOUR OBJECTIVE IS

There is a term / concept known as the

Net Asset Value (NAV) which is a factor

of the market price of funds assets

and the number of units issued.


The diversified equity fund has postedcapital appreciation over the last 3 yearsafter considering the level of riskundertaken.

SO HOW DO I

BUY MUTUAL

FUNDS?

7/30/2019 Comic 12mar12

19/29

You can see that the funds with the lowestas

well as highest NAVs have shown maximum

growth. Therefore it is only the fund, theportfolio and the style of management that

should be the deciding factors for buying a

fund and not the NAV.

Similarly, when fund houses launch NFOs at

Rs 10 NAV, it does not mean that it is a cheaper buy.

FUND X's NAV

Date Asset Value No. of Units NAV

20 Dec 2010 50,000 5,000 10

20 April 2011 60,000 5,000 12

As the value of the assets (equities owned by the fund) goes up, the NAVincreases and vice-versa. NAVs are often compared to share prices but thiscomparison is fundamentally flawed. Here is how:

Stocks have a book value which depends on the net worth and number of stocksissued. When a stock price rises, it does so due to market sentiment andexpectations. Therefore as soon as stock prices rise, the book value is divorced

from the market value.

An NAV is the value of a mutual fund's assets after adjusting fund managementexpenses, marketing expenses, etc. Thus, a higher NAV does not indicate whether a

fund is expensive; nor does it indicate that it is cheap. It is merely the fair value ofa mutual fund.

Hence, while selecting a fund, the NAV shouldnt be the only criteria.

NAV GROWTH

Schemes NAVs On Growth

Apr 01, 2010 Dec 01, 2010Invest Well Equity Fund.Secure Growth Cap FundGrow Capital Equity FundBlake Sempleton GrowthFund M 40 ( G)

23.557.4419.8621.7012.12

38.9712.0430.2331.5716.56

65.5%61.8%52.2%

45.5%36.9%


Let me illustrate

7/30/2019 Comic 12mar12

20/29

WHAT DO WE NEED TO

CHECK ABOUT THE

STOCK PORTFOLIO?

You invest in equity funds

to derive the benefits of

diversification. Thus you

need to ensure that the

fund manager is doing

that.


FUND ASSETS NEED TO BE INVESTED IN DIFFERENT SECTORS. MANY TIMES 20-25%

ASSETS ARE INVESTED IN A SINGLE SECTOR STOCK. THIS IS NOT A TRULY DIVERSIFIED

PORTFOLIO.

In another extreme, the fund might have invested in as many as 100 stocks! This

again is not diversification, it is fragmentation.

7/30/2019 Comic 12mar12

21/29

I..ER..I'M SORRY! WHERE

WERE WE?Thats fine! I think

youve had an

information overload.

LET'S GO HAVE SOME

TEA. THAT'LL

REFRESH ALL OF US.

BRILLIANT

IDEA!


7/30/2019 Comic 12mar12

22/29

I AM NEVER GOING TO BE ABLE

TO REMEMBER SO MUCH DATA!

HOW DO YOU MANAGE?

BUT I'M SURE READING

UP WILL HELP.

DEFINITELY. PICK UP ARTICLEs

RELATEd TO MUTUAL FUNDS AND READ

THROUGH. YOU MAY FIND THE TERMS

UNFAMILIAR at first BUT SOON

YOU'LL BEGIN understanding THEMVERY WELL AND EVEN CONVERSE

KNOWLEDGEABLY ABOUT THEM.

THAT'S NOT entirely

TRUE!

MUTUAL FUNDS -AN EASY INTRODUCTION 21

AND ALL HE EVERREADS about IS

FINANCE!

I have been in this field

for years now; so

experience does matter!

7/30/2019 Comic 12mar12

23/29

IT WOULD BE GREAT, IFSOMEONE ELSE COULDMANAGE THE SAME FOR

ME.

THAT'LL BE SOMUCH SIMPLER.

he CAN HELP YOU WITHALL THE DATA AND

GIVE GOOD ADVICE ONTHE SAME.

THERE'S A SOLUTION FORTHAT TOO. THAT'S WHERE HE,THE INVESTMENT ADVISOR,

COMEs IN.


IT WOULD BE GSOMEONE ELSMANAGE THE S

ME.

7/30/2019 Comic 12mar12

24/29


IS YOUR INVESTMENT ADVISOR QUALIFIED?NISM accredits individuals who are successful in the

qualifying examination as NISM registered mutual fundadvisors.

WILL HE PROVIDE INVESTMENT SOLUTIONS?Providing investment solutions is completely different

from selling investment products. He should offer you theentire range of products from mutual funds to bonds to

insurance. He should be able to construct a customisedportfolio for you based on your needs and risk profile.

DOES HE PROVIDE VALUE-ADDED SERVICES?Investments need to be tracked and monitored on a

regular basis as you have just seen. Yourinvestment advisor should have the necessary

infrastructure for such tracking and calculationsand he should advise you on managing your

investments according to market conditions.

DOES HE PROVIDE OBJECTIVE ADVICE?It is important that an investment advisor put yourinterest before his. His brokerage or commissions

should never be the driving factor to make him pushyou into any investment.

7/30/2019 Comic 12mar12

25/29

TEA FOR

EVERYBODY?

YES!

Before you decide to

consult an investment

advisor, you should also

learn about investing

directly in to a mutual

fund.


Direct Investing?

What do you mean?

7/30/2019 Comic 12mar12

26/29


Let me explain this to

you. One point at a

time.

When you consult an Investment Advisor thereare certain points you should be aware of, for

instance, an Investment Advisor will chargeyou a consultation fee. Of course, since he is

offering you a service, you will need to pay hima fee for his services. Nothing wrong with that!However, he should be completely transparent

with regards to the fee that he earns. This is toensure that you know WHY your advisor isselling you a fund- because it suits your

investment needs OR just because he is gettinga higher commission from the AMC.

And, what about thedirect model ofinvesting? How

does that work?

Oh! Thats animportant point to

remember.

7/30/2019 Comic 12mar12

27/29


Yes, I was just coming tothat. Through the directinvesting model, you can

approach an AssetManagement Company

directly.

Walk into the AMC towhich you want to

entrust your savingsand talk to their

Relationship Managers.

Your RelationshipManager will help you

with the completeinvestment processand will be your one

point of contact for anyquery you have on

investing goingahead. Simple, isnt it?

Hmmm Quantum MutualFund. What makes them

different from theIndustry?

The direct model sounds

interesting. Is there anyAMC that exclusively

offers this platform?

Yes, there is an AMC whichis Indias 1st and only

direct to investor mutualfund - Quantum Asset

Management Company PvtLtd.

Now, that issomething I will

be glad toexplain to you.

One AMC also offers you a complete online

paperless investment process. This is aconvenient and environmentally friendlyapproach towards investing. Paperlesstransactions save paper. save trees!

7/30/2019 Comic 12mar12

28/29


With this ideology in mind, Quantum Mutual Fund was established as Indias 1st and onlydirect-to-investor mutual fund.

Quantum Mutual Fund started its journey in 2006, and opted to walk a

road different from the rest. With the investor as their primary focus,

and the investors benefit as their only priority, Quantum Mutual Fund

reused to adhere to the commission paying style of promoting its

funds. Quantum does not want their funds to be sold to investors; they

rather have them buy into their products. The non-commission stance

was not because they had anything against distributors; but the

opposition was to the opaque practices of distribution.

No Star Fund Manager: Quantum Mutual Fund believes in a team approach.They follow a process for selecting or avoiding stocks, and as such the conceptof Star Fund Managers does not appeal to them. Their fund managers work

along with their research team to ensure that come what may your portfolio isnever compromised.

Low Cost: The chief benefit of investing with a direct-to-investormutual fund is lowered costs since you, as an investor, save ondistribution expenses. They have also added to your costsavings by endeavoring to offer you one of the lowest expenseratios in the industry. They are a low cost fund that works toadd value to your investments.

Long Term Approach: Quantum believes that investing is actually aboutwatching your hard earned savings grow into wealth over the long term.Their research methodology and investment approach reflect this longterm vision in practice.

Simple Products: Quantum doesnt understand the New Fund Offerfrenzy; that is the reason why they have launched only 7 basic funds tilldate. Their product portfolio aims to help you spread your investmentsacross asset classes, viz Equity, Debt and Gold. Sectoral and Thematicfunds make very little sense to them, and as such they have stayed awayfrom launching such products.

Disciplined Process: They believe in a disciplined investment process and

buy into companies with respected managements and high corporateethics.Transparency in Functioning: Quantum Mutual Fund is built on the trustof their investors. And hence, they work towards retaining this faith byensuring transparency in their communication and workings with theirinvestors.

QUANTUM MUTUAL FUND IS DIRECTED BY A SET OF VALUES THATTHEY TREASURE AS THE QUANTUM PHILOSOPHY.

REACH QUANTUM AT

1800 209 38639243 223 863

SMS PARIMAAN TO

1800 209 3863

7/30/2019 Comic 12mar12

29/29

So, you see the choice is all yours-

either choose to invest directly or

select an advisor who gives you

unbiased and honest advice.

However, always remember to make

your decision based on your

financial needs and appetite for

risk. After all, selecting a fundmanager is like selecting a spouse.

Yes, and we surelywant an ideal

match!

ha...ha...well said!

Risk Factors:All Mutual Funds and securities investments are subject to market risks and there can be no assurance

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

that the schemes objective will be achieved and the NAV of the scheme may go up or down depending upon the

rate of return. Investment in mutual fund units involves investment risks such as trading volumes, settlement risk, liquidity

risk, default risk including possible loss of capital.Past performance of the Sponsor / AMC/ Mutual Fund does not indicate the

future performance of the Scheme. Statutory Details: Quantum Mutual Fund (the Fund) has been constituted as a Trust

under the Indian Trusts Act, 1882. Sponsor: Quantum Advisors Private Limited. (liability of Sponsor limited to Rs. 1,00,000/-)

Trustee: Quantum Trustee Company Private Limited Investment Manager: Quantum Asset Management Company Private

Limited (AMC). The Sponsor, Trustee and Investment Manager are incorporated under the Companies Act, 1956.

The views expressed here in this booklet constitute only the opinions and do not constitute any guidelines or

recommendation on any course of action to be followed by the reader. The data / information / opinions are meant for

general reading purposes only and are not meant to serve as a professional guide / investment advice for the readers. This

booklet has been prepared on the basis of publicly available information, internally developed data and other sources

care has been taken to endeavor that the facts are accurate and opinions given are fair and reasonable as on date. The data

units of the mutual fund. Readers are advised to seek independent professional advice and arrive at an informed investment

decision before making any investments. Neither of The Sponsor, nor The Investment Manager, nor The Trustee, nor their

information / opinions contained in this booklet.

STATUORY DETAILS, DISCLAIMERS AND RISK FACTORS:


"This comic guide is authored by PersonalFN, a service brand of Quantum Information Services Pvt. Ltd., which has over 10 years

of expertise in researching Mutual Funds and also provides unbiased views on Mutual funds, Insurance, Gold and Fixed Income

instruments in India. PersonalFN has also been powering research services or Quantum Equity Fund of Funds, a product of

Quantum Mutual Fund."

Date:- 5th March, 2012