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Mutual Fund Creation Challenge Guide

Students will work in teams to create and pitch their own mutual fund scheme, which includes selecting a fund type, portfolio holdings, and asset allocation strategy. The activity involves defining the fund's objective, risk-return profile, and preparing a factsheet and presentation. Learning outcomes include understanding mutual funds, portfolio construction, and effective pitching of financial products.

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3 views3 pages

Mutual Fund Creation Challenge Guide

Students will work in teams to create and pitch their own mutual fund scheme, which includes selecting a fund type, portfolio holdings, and asset allocation strategy. The activity involves defining the fund's objective, risk-return profile, and preparing a factsheet and presentation. Learning outcomes include understanding mutual funds, portfolio construction, and effective pitching of financial products.

Uploaded by

sauravarya855
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Mutual Fund Draft Challenge Activity.

Details about the activity.

Activity Overview

Students will work in teams to create and pitch their own mutual fund scheme.
They will act as a Mutual Fund House and prepare:

 A fund theme/type
 A portfolio of 10–15 real stocks or securities
 Asset allocation strategy (Equity, Debt, Hybrid, Sectoral, etc.)
 Risk-return analysis
 A one-page fund factsheet
 A 3–4 minute pitch explaining why investors should buy their fund

Team Size

 3 members per team


 Encourage diversity of skills: finance, presentation, research, analysis

Activity Instructions / Steps

Step 1: Choose the Type of Mutual Fund

Teams must pick one type of fund:

 Equity Fund
 Debt Fund
 Hybrid Fund
 Sectoral/Thematic Fund
 Index Fund
 Small-Cap / Mid-Cap Fund
 ESG/Sustainable Fund

They must clearly state why this category was chosen.

Step 2: Select Portfolio Holdings

Teams must pick 10–15 real listed companies or securities from NSE/BSE.

They must justify:

 Why each company/security fits the fund’s objective


 Growth potential
 Sector allocation
 Market cap preference
 Diversification logic

Step 3: Decide Asset Allocation Strategy

For example:

 70% Equity + 30% Debt (Hybrid Fund)


 100% Equity diversified across 5 sectors (Equity Fund)
 80% Banking + 20% Tech (Sector Fund)

They must show:

 % allocation to each stock/security


 Sector-wise pie chart (optional but useful)

Step 4: Define Fund Objective & Target Investors

Teams explain:

 What the fund aims to achieve (growth, stability, income, long-term wealth)
 Ideal investor (conservative, moderate, aggressive)
 Time horizon (short-term/long-term)

Step 5: Risk & Return Profile

Teams must briefly explain:

 Expected return
 Risk level (low, moderate, high)
 Beta (if applicable)
 How diversification reduces risk

Step 6: Prepare the Fund Factsheet

Each team submits a PowerPoint Presentation including:

Fund Name
Type/Category
Objective
Top 10 Holdings with % Allocation
Sector Allocation
Risk Level
Benchmark Index
Investor Profile
Step 7: Pitch Presentation

Each team gets 3–4 minutes to present:

 Fund concept
 Rationale behind stock selection
 Key differentiating features
 Why investors should choose this fund

2 minutes Q&A by judges or participants.

Learning Outcomes

Students will learn:

 Basics of mutual funds, NAV, risk-return relationship


 How fund managers construct portfolios
 Sector diversification and asset allocation
 How macro and micro factors affect investments
 How to pitch a financial product effectively

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