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Presented by: Gurmeet Singh M.B.A. Sem.1st {2009-10} Roll no.- M0914
Meaning of Mutual Fund History of Mutual Fund Flow chart of Mutual Fund Types of Mutual Funds Advantages of Mutual Fund Name of the companies who launched various Mutual Funds
A Mutual Fund is a trust that pools together the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities.
The history of mutual funds in India can be broadly divided into four distinct phases:
1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987.
With the entry of private sector funds in 1993, a new era started in the Indian mutual fund industry, giving the Indian investors a wider choice of fund families. In 1993 was the year in which the first Mutual Fund Regulations came into being, under which all mutual funds, except UTI were to be registered and governed.
One is the Specified Undertaking of the Unit Trust of India with assets under management of Rs.29,835 crores as at the end of January 2003. The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations.
Open ended
Close ended
Equity
Balance fund
Gilt fund
Income
Money market
Index fund
Open-ended Fund
An open-ended Mutual fund is one that is available for subscription and repurchase on a continuous basis. These Funds do not have a fixed maturity period.
close-ended Fund
A close-ended Mutual fund has a stipulated maturity period e.g. 5-7 years. The fund is open for subscription only during a specified period at the time of launch of the scheme.
Balanced Fund
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The aim of balanced funds is to provide both growth and regular income as such schemes invest both in equities and fixed income securities in the proportion indicated in their offer documents. These are appropriate for investors looking for moderate growth.
Money Market
These funds are also income funds and their aim is to provide easy liquidity, preservation of capital and moderate income. These schemes invest exclusively in safer shortterm instruments such as treasury bills, commercial paper and government securities, etc. These funds are appropriate for corporate and individual investors as a means to park their surplus funds for short periods.
Gilt Funds
These funds invest exclusively in government securities. Government securities have no default risk.
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Index Funds
This schemes invest in the securities in the same weightage comprising of an index.
This schemes would rise or fall in accordance with the rise or fall in the index
Summary
The Mutual Fund Industry is a growth industry Mutual Funds cover a spectrum of Investment Options Start Investing Early & Systematically
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REFRENCE
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moneycontrol.com wikipedia.co.in
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