Introduction to Mutual Funds

Course Objectives

The objective of this course is to provide participants with a foundational understanding of mutual funds and their role in personal finance and investment planning. The course is designed to help learners grasp the basic concepts of mutual funds, including their definition, structure, and key stakeholders such as the fund manager, Asset Management Company (AMC), and trustee. It aims to familiarize participants with the different types of mutual funds, such as equity funds, debt funds, hybrid funds, index funds, and tax-saving funds (ELSS), and explain how each caters to different investment goals and risk appetites.

In addition, the course will explain how mutual funds operate by detailing the process of pooling investors’ money and investing in financial markets. Learners will gain insights into important concepts like Net Asset Value (NAV), Systematic Investment Plans (SIPs), and lump-sum investments. The course also aims to develop a practical understanding of the risk-return tradeoff involved in mutual fund investing, the factors that influence returns, and how diversification can help manage risks effectively. By the end of the course, participants will be equipped with the knowledge needed to make informed decisions when investing in mutual funds.

Pedagogy

1. Interactive Lectures: Concepts will be explained using real-world examples and simplified models for better clarity.
2. Case Studies: Practical scenarios will be discussed to understand mutual fund performance and investor behavior.
3. Infographics & Visual Aids: Charts, graphs, and visuals will be used to demonstrate NAV calculation, fund categories, and SIP vs lump-sum comparisons.
4. Q&A Sessions: Regular short quizzes and open forums to address participant doubts and enhance retention.
5. Hands-on Examples: Simple demos using online mutual fund platforms and NAV trackers to understand live fund data.

Programme Highlights

• Foundation-Focused: Designed for beginners or early investors to build a solid base in mutual fund investments.
• Comprehensive Coverage: Covers essential topics including fund structure, types, operational mechanism, and risk-return analysis.
• Conceptual Clarity: Emphasis on understanding rather than rote learning, with simplified breakdowns of technical terms like NAV and SIP.
• Real-Life Application: Practical insights into how mutual funds can be aligned with different financial goals.
• Engaging Format: Each 10-minute module is crisp, informative, and interactive to maintain learner engagement and maximize learning impact.