Mutual Funds Industry

7/25/2019 Mutual Funds Industry

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M

UTUAL

FUN

SUBMITTED BY-

SADDAM HUSAIN

MBA 3rd SEM(FINANCE)

ROLL NO-28

Mutual Funds

INDUSTRY


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Mutual Fund OperationFlow hart


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The growth of mutual funds


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First !hase " #$%&'() *nit Trust of +ndia *T+- was established on #$%& by an Act of !arliament. At the end of #$((

*T+ had s.%,)// crores of assets under management.

0econd !hase'#$()'#$$& 1ntry of !ublic 0ectorFunds- marked the entry of non' *T+, public sector mutual funds set up bypublic sector banks and 2ife +nsurance orporation of +ndia 2+- and 3eneral +nsurance

orporation of +ndia 3+-. 04+ Mutual Fund was the first non' *T+ Mutual Fund establishedin 5une #$(). At the end of #$$&, the mutual fund industry had assets under management ofs.6),//6 crores.

Third !hase'#$$&'7//&1ntry of !rivate 0ectorFunds- #$$& was the year in which the first Mutual Fund egulationscame into being, under which all mutual funds, e8cept *T+ were to be registered andgoverned. The erstwhile 9othari !ioneer now merged with Franklin Templeton- was the first

private sector mutual fund registered in 5uly #$$&. As at the end of 5anuary 7//&, there were&& mutual funds with total assets of s. #,7#,(/: crores.

Fourth !hase " since February 7//&+n February 7//&, following the repeal of the *nit Trust of +ndia Act #$%&. *T+

Mutual Fund 2td, sponsored by 04+, !;4, 4O4 and 2+. +t is registered with 014+ andfunctions under the 014+ Mutual Fund egulations


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Regulat!ons

%overned !y SEB $0utual und' 5egulation 667 8ll 0s registered &ith it, constituted as trusts $ under ndian *rusts 8ct,

99:'Ban( operated 0s supervised !y 5B too.

80C registered as Companies registered under Companies 8ct, 6;7.

SEB-


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ADVANTAG! OF M"T"A# F"ND!$

!ortfolio =iversification?

!rofessional Management

eduction@=iversification Of isk

eduction Of Transaction osts?onvenience And Fle8ibility

Ta8 4enefits

hoice of 0chemes

ell egulated?Transparency

2i>uidity


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D%!ADVANTAG! OF M"T"A#F"ND!$

;o ontrol Over osts

;o Tailor'Made !ortfolio

Managing A !ortfolio Of FundsThe isdom Of !rofessional Management

;o ontrol

=ilution

4uried osts


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AMF+ B 014+

AMF+ is a trade body of all the mutual funds in +ndia. +t was incorporated in August #$$: as a non'profit organization to

promote and protect the interests of mutual funds and their unitholders.

=efine and maintain high ethical and professional standards andenhance public awareness of mutual funds.All mutual funds in +ndia are members of the association.AMF+ works through committees and working groups.All mutual funds are re>uired to be registered with 014+ before

they launch any scheme.Asset Management ompany AM- who manages the funds by

making investments in various types of securities have to beapproved by 014+ .


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!WOT Anal&sis of mutual fund%ndustr& in %ndia

Mutual funds are among the financial products thatbenefit from conducting a 0OT analysis. 4y

reviewing their strengths, weaknesses, opportunitiesand threats, an individual investor can be betterinformed on where to invest their money, and bepositioned to shift gears along with the market.


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1A9;100

!oor participation of retail investors

2ack of focus

*nder performance

!oor service conditions=istribution network is confines only to metro cities


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O!!OT*;+T+10

Cuge untapped market in semi'urban and ruralareas.

Cigh level of savings habit among the people

2iberalized business environment.*sing on'line mode of trading systems.

+nvestment opportunities abound in theinternational market.

Failures of non bank financial company operations.


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TC1AT0

+ncreasing competition among the players.

Cigh level of volatility in the stock market.

!ossibility of more stringent regulations by 014+ ,

4+ , AMF+ , etc ., in future.


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!orterEs Five Forces MO=12 OF Mutualfund +ndustry in +ndia


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4argaining !ower of 0uppliers

2arge number of substitute inputs

Cigh competition among suppliers

2ow concentration of suppliers

=iverse distribution channel+nputs have little impact on costs

ritical production inputs are similar

Dolume is critical to suppliers2ow cost of switching suppliers


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+ntensity of 18isting ivalry

3overnment limits competition

2arge industry size

Fast industry growth rate

2ow storage costselatively few competitors

18it barriers are low


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Threat of 0ubstitutes

0ubstitute product is inferior

0ubstantial product differentiation

Cigh cost of switching to substitutes

2imited number of substitutes


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T&, ",ST ANALYSIS


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'oliti(al Anal&sis

In Ind%'1 SEBI (Mutu' Fund) Reu't%*n!1 445 reu'te!

te !tructure */ "utu' /und!6

Mutu' /und! %n Ind%' 're c*n!t%tuted %n te /*r" */ ' 7u#%c

Tru!t cre'ted under Te Ind%'n Tru!t! Act1 8826

Te !t'#%%t */ te *ern"ent 'nd &e*&e /'%t %nt* %t 'ct!

'! 'n %"&*rt'nt return /'ct*r6

Te %"&'ct */ /*re%n %ne!t"ent6

F*rced rene*t%'t%*n */ c*ntr'ct!

A reu%re"ent t't ' "%n%"u" &ercent'e */ !u&er%!*r

&*!%t%*n! #e ed # *c'!.


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!o(io-(ultural anal&sis

The most important factor shaping in todays globaleconomy is the process of globalization.

The increasing share of +ndia and other emerging marketeconomies in world trade.

To fund future needs, To meet contingencies, To maintainsame standard of living after retirement .

0tandard of living of population tends to improve.


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)hallenges ahead**

9%den r'ne */ &r*duct! ,%t '//*rd'#e 'nd c*"&et%t%e!ce"e! t* t'& te "'r.et6

Need! t* c*'#*r'te ,%t *ter !ect*r! */ te ec*n*"!uc '! #'n.%n 'nd teec*""un%c't%*n!6

C*"&'n%e! 're '!* reu%red t* t'.e 'd'nt'e */ ter*,%n *&&*rtun%t %n te c*""*d%t%e! "'r.et6 Furter1 te"utu' /und! c*ud '!* en'#e te !"' %ne!t*r! t*&'rt%c%&'te %n te re' e!t'te #**" tr*u re' e!t'te"utu' /und!6

9%t ' !tr*n reu't*r /r'"e,*r.1 ce'r u%de%ne! 'nd te

t'ent t* #'c. %t u&1 te Ind%'n "utu' /und %ndu!tr %! %n '&*!%t%*n t* c'ter t* te ne, #reed */ %ne!t*r! ,* 're .eent* d%er!%/ te%r r%!.!


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T&pes of risks

Management isk

!urchasing !ower isk

urrency isk

Market isk0ector isk

2i>uidity isk

+nterest ate isk


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Mutual Funds Industry

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