Course Overview

Over the past decades mutual funds have grown intensely in popularity and have experienced a considerable growth
rate. Mutual funds are popular because they make it easy for small investors to invest their money in a diversified pool of securities. As the mutual fund industry has evolved over the years, there have arisen many questions about the nature of operations and characteristics of these funds. This course on ‘Mutual Funds’ provides an in-depth coverage of the mutual fund industry and its operations in an interactive format. It is intended to familiarize you with the basic concepts related to mutual funds. The course first provides the fundamentals, explaining what mutual funds are and how they work. The course provides an overall understanding of how equity and bond fund portfolios are managed. Various factors surrounding the performance of mutual funds are then highlighted along with a brief of various standardized performance systems. Finally, the course depicts the recent trends in the mutual funds industry.

Course Methodology

Course Objectives

By completely attending this course, participants will be able to:
  • Concept of mutual funds
  • Structure and constituents of mutual funds
  • Various types of mutual fund products
  • Management of bond fund portfolio
  • Management of equity fund portfolio
  • Accounting and valuation of mutual funds
  • Prospectus of mutual fund
  • Annual Report of mutual fund
  • Evaluation of performance of mutual funds
  • Regulations of mutual fund Industry
  • Trends in mutual fund Industry

Target Audience

  • Entry level analysts
  • Institutional salespersons
  • Traders
  • Portfolio Managers and
  • Individual Investors

Target Competencies

Course Outline

MUTUAL FUNDS

  • Concept of mutual funds
  • Basic types of mutual funds
  • Advantages of mutual funds
  • Difference between mutual funds and bank deposits

STRUCTURE AND CONSTITUENTS OF MUTUAL FUNDS

  • Constituents and structure of a mutual fund
  • Mutual funds in the USA and elsewhere
  • Difference between a mutual fund and a commercial bank

VARIOUS TYPES OF MUTUAL FUNDS PRODUCTS

  • Basic classification of mutual funds
  • Such other products similar to mutual funds

MANAGEMENT OF BOND FUND PORTFOLIO

  • Investment of bond funds
  • Basic characteristics of a bond
  • Bond valuation
  • Risks in bond investment
  • Techniques to enhance bond fund performance
  • Managing the bond fund

MANAGEMENT OF EQUITY FUND PORTFOLIO

  • Equity portfolio
  • Types of risks and returns that different asset classes offer
  • Equity share
  • The value of equity shares
  • Three types of equity shares
  • Equity research
  • Valuation
  • Passive and active portfolio management
  • Portfolio strategies

ACCOUNTING AND VALUATION

  • NAV and its importance
  • Calculating net asset value
  • Valuing the assets of the mutual fund
  • The financial statements that are prepared by the mutual fund
  • The accounting principles followed by the mutual funds

EVALUATION OF PERFORMANCE OF MUTUAL FUNDS

  • Measuring fund performance
  • Measuring return
  • Measuring risk
  • Risk-adjusted return
  • Comparing fund performance with a reference
  • Various standardized performance systems
  • Limitations of performance measurement and evaluation

PROSPECTUS AND ANNUAL REPORT OF A MUTUAL FUND

  • Meaning and importance of mutual fund prospectus
  • The contents of a mutual fund prospectus
  • The operational aspects an investor should be familiar with

REGULATIONS OF MUTUAL FUNDS INDUSTRY

  • Contextual significance of mutual fund regulation
  • Legal environment of mutual funds
  • Supervision and regulation
  • Principles of mutual fund regulation
  • Standards
  • Rights of investors
  • Role of industry players in furthering regulatory objectives
  • Market context
  • Transparency and disclosure
  • Limits on fees and expenses
  • Internal governance within mutual fund complexesPotential credit risk in loan commitments and unfunded lines of credit
Location & Dates
Call us at +971 4 430 8394