MEANING OF MUTUAL FUNDSA Mutual fund is a common pool
of money in to which investors with common investment objective place their contributions that are to be invested in accordance with the stated investment objective of the scheme. The investment manager would invest the money collected from the investor in to assets that are defined/ permitted by the stated objective of the scheme.
HISTORY OF MUTUAL FUNDS
0
1000
2000
3000
4000
5000
6000
7000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
July 91Dr. Manmohan Singh liberalizes capital market by abolishing Controller of Capital Issues
April 92Peak driven bull market
d
May 92Market crashes after the Scam and 15 days broker’s Strike.
Sep 94FII driven peak
Bear Hug
1987-88Public Sector Mutual Funds
1992-93First
Private Sector
1994-95Private SectorBirla / Alliance
1993-94Morgan Stanley
First to launchOpen-ended funds
During the Bear PhaseFirst open-ended Debt fund launched
History of mutual funds in India
IPO Market Equity Fixed Deposits Mutual Funds ?Phases in the market
1999Tax Breaks
MUTUAL FUND PILLAR’S
SponsorTrusteeAsset management companyCustodian
CLASSIFICATION OF MUTUAL FUNDSMUTUAL FUNDS
MATURITY INVESTMENTOTHER FUNDS/
SCHEMES
MATURITY
OPEN ENDED
CLOSED
ENDED
INVESTMENT
INVESTMENT
GROWTH/EQUITY
INCOME/DEBT
MONEY MARKET OR
LIQUID FUND
Other funds/scheme:
Tax Saving fundsSector Specific fundsPerformance funds
INFORMATION OF MUTUAL FUNDS SCHEMES
Load or no-load FundAssured return schemeOffer document Net Asset Value (NAV) Sale priceRepurchase Price
TYPE OF RISK
MARKET RISK
LIQUIDITY RISK
CREDIT RISK
INTEREST RATE RISK
INVESTMENT RISK
WHO ARE THE ISSUERS OF MUTUAL FUND IN INDIA
Alliance Capital Mutual FundBirla Mutual FundCholamandalam Mutual FundFidelity Equity FundHDFC Mutual FundsING Saving trustRELIANCE Capital SBI Mutual
TOP 10 MUTUAL FUNDS COMPANIES
COMPARISON OF TWO GROWTH SCHEMES:
SCHEME 1. RELIANCE GROWTH FUND
SCHEME 2. HDFC GROWTH SCHEME.
APPLICATION AMOUNT- Rs. 5500
ASSET ALLOCATIONEQUITY 80-100 RISK –
highDEBT 0 - 20 RISK –
low
EXPENSES - 2.32%
APP LICATION AMOUNT – Rs. 5000
ASSET ALLOCATIONEQUITY 65-100 RISK –
highDEBT UPTO 35 RISK -
mediumEXPENSES - 1.80%
REGULATION & GUIDELINES FOR MUTUAL FUNDS
Mutual fund shall be established under the Indian Trust Act and be authorized for business by the SEBI.
The AMC should have minimum net worth of Rs.5 crores at all times.
SEBI is given the power to withdraw the authorization given to any AMC.
At least 50% of the Board of AMC must be independent directors who have no connections with the sponsoring organization.
INVESTORS RIGHTS
Unit CertificatesTransfer of UnitsRefund of Application MoneyAudited annual reportNet Asset value
CHECK THE MUTUAL FUND STATEMENT BEFORE INVESTING
Investors' personal detailsAdviser's name: Bank detailsCurrent cost and valuePAN details
WHERE TO BUY A MUTUAL FUNDAsset Management CompanyBrokers and financial product
distributorsOnline
FUTURE SCENARIO
The asset base will continue to grow at an annual rate of about 30 to 35 % .
Mergers.Foreign owned mutual fund companies .
