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Mutual Fund Industries of IndiaMutual Fund Industries of India

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Mutual Fund is a trust that pools the savings of anumber of investors who share a common financialgoal.

Money collected and invested in the capital marketinstrument which are as follows:

SharesDebentureOther securities such as Govt Bonds, Gold, etc

The income earned through these investments and thecapital appreciation realised are shared by its unitholders in proportion to the number of units owned bythem.

What is Mutual FundWhat is Mutual Fund

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Mutual Fund Operation Flow Chart

Passedback to

generates

Pool theirmoney with

Invest in

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Types of Mutual Funds

By structureOpen-ended fundClosed-ended fundInterval

By investment objectiveGrowth fundIncome fundBalanced fundMoney market fund

O ther schemesTax saving schemesSpecial schemesIndex fundSector specific schemes

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MUTUAL FUND INDUSTRY IN INDIA:

First Phase 1964-87

Unit Trust of India (UTI) was established on 1963 It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the ReserveBank of India. by an Act of Parliament. The first scheme launched by UTI was UnitScheme 1964.Second Phase 1987-1993 (Entr y of Public Sector Funds)1987 marked the entry of non- UTI, public sector mutual funds set up by public sectorbanks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC).Third Phase 1993-2003 (Entr y of Private Sector Funds)With the entry of private sector funds in 1993, a new era started in the Indian mutualfund industry, giving the Indian investors a wider choice of fund families. The 1993 SEBI(Mutual Fund) Regulations were substituted by a more comprehensive and revisedMutual Fund Regulations in 1996.

Fourth Phase since Februar y 2003In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI wasbifurcated into two separate entities. One is the Specified Undertaking of the Unit Trustof India with assets under management of Rs.29,835 crores as at the end of January2003, representing broadly, the assets of US 64 scheme, assured return and certainother schemes.

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The worldwide value of all mutual funds totals more than$US 26 trillion.

There are more than 8000 mutual fund schemes in theU.S.A. Comparatively

India has around 1000 mutual fund schemes, but thisnumber has grown exponentially in the last few years.

Total Assets under Management in India of all Mutualfunds put together touched a peak of Rs. 5,44,535 crs. atthe end of August 2008.(Source :NSE India.com )

Quick FactsQuick Facts

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Structure Of Mutual FundsStructure Of Mutual FundsIndia follows 3 tier structure:

Sponsor(1 st tier): He thinks of starting mutual funds.Then he approaches to SEBI.Public Trust(2 nd tier): As per the Indian Trusts Act, 1882.Trusts have no legal identity in India and cannot enterinto contracts, hence the Trustees are the peopleauthorized to act on behalf of the Trust. Contracts areentered into in the name of the Trustees. Once the Trustis created, it is registered with SEBI after which this trust

is known as the mutual fund.Asset Management Compan y(3rd tier): Trustee appointthem to manage investors money. They charge fees inlieu of the services.

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TOP 3 MU TUAL FUNDTOP 3 MU TUAL FUND1. HDFC Mutual FundInception Date June 30th 2000Trustee HDFC Trustee Company Ltd.Top Performing Schemes AUM as on 30th April 09

+ HDFC Top 200 (2338 cr)+ HDFC Equity (2759.30 cr)+ HDFC MIP Long-term (887.90 cr)

2. Tata Mutual FundInception Date June 30th 1995Trustee Tata Trustee Company Pvt. Ltd.Top Performing Schemes AUM as on 30th April 09

+ Tata Pure Equity (269.95 cr)+ Tata Index Nifty (6.77 cr)+ Tata Short-term Bond (292.08 cr)

3. SBI Mutual FundInception Date June 29th 1987Trustee SBI Mutual Fund Trustee Company Pvt. Ltd.Top Performing Schemes AUM as on 30th April 09+ Magnum Contra (1,958.50 cr)+ Magnum Balanced (333.11 cr)+ Magnum Multiplier Plus (687.15 cr)

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HDFC MUTUAL FUNDHDFC MUTUAL FUND

HDFC Asset Management Company Ltd (AMC) was incorporated under the Companies Act,1956, on December 10, 1999.

Under the Investment Management Agreement, the Trustee has appointed the HDFC AssetManagement Company Limited to manage the Mutual Fund. The paid up capital of the AMC isRs. 25.161 crore.

The present equity shareholding pattern of the AMC is as follows :

Particulars Percentage

Housing Development Finance Corporation Limited 60%Standard Life Investments Limited 40%

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BOARD OF DIRECTORBOARD OF DIRECTORThe Board of Directors of the HDFC Asset Management Compan y

Limited(AMC) consists of the following eminent persons.

Mr. Deepak S. ParekhMr. N. keith Skeoch

Mr. Keki M. MistrvMr. James AirdMr. P. M.ThamniMr. Humavun DhanraigirDr. Deepak B. PhatakMr. Hoshang S. BillimoriaMr. Rajeshwar Raj BajaajMr. Vijay MerchantMs. Renu Kamad

Mr. Milind Barve

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PRODUCTS

Equit y / Growth Fund: Invest primarily in equity and equity relatedinstruments.Children's Gift Fund: Children's Gift Fund.Fixed Maturit y Plan: Invest primarily in Debt / Money Market

Instruments and Government Securities.Liquid Funds: Provide high level of liquidity by investing in money

market and debt instruments.Debt/ Income Fund: Invest in money market and debt instruments

and provide optimum balance of yield.

Quarterl y Interval Fund: The primary objective of the Scheme is togenerate regular income through investment.

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Growth in AUM in Indian Mutual Fund Industry

-Growth of AUM was 35%between 31 st march 2005 t031 st march 2009

-It was despite of fall inAUM1) DOTCOM Bubble2) Global economic

slowdown in 2008

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Challenges and IssuesLow customer level awareness and financial literacyLimited focus of fund houses retail penetration top 20cities onlyProduct-led not customer focus

Limited flexibility in timing and pricing structurescurrentlyLimited focus on public sector network including publicsector bank, India post for distribution.

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PRESENTED BY

SAYANTANI BHOWMIKSAYANI SAHA

BANDANA CHAKRABORTYRINI SAXENAPRATIK BHATTACHARYA

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