MUTUAL FUNDS

BY VINEESH.SR

WHAT IS
A mutual fund is a professionally managed

type of collective investment scheme that pools money from many investors to buy stocks, bonds, short-term money market instruments, and/or other securities. offer diversification Help to reduce overall risk of the portfolio Minimum investment amount in mutual fund units is fairly low ( RS 500)

CONT
Not more than 5% of house hold saving are

chanalised into markerters 8 cities accounts for over 60% of the total assets Today more than 40 mutual funds 1051 schemes

STRUCTURE
3- TIER Structure

Sponsor Public trust Asset management company

CUSTODIAN
role is safe keeping of physical securities and

also keeping a tab on the corporate action like rights , bonus, and dividend A ppointed by the board of trustees

Role of AMC
To manage the investors money on a day to day

basic AMC cannot deals with a single broker beyond a certain limit of transactions The AMC cannot act as a trustee for some other mutual fund The responsibility of preparing offer document lies with the AMC

NFO
It is like an invitation to the investors to put their

money into the mutual funds scheme by subscribing to its units

ROLE OF REGISTERER & TRANSFER AGENT

Registrars and Transfer Agents (RTAs) perform

the important role of maintaining investor records All the NFO go to the RTAs office where the information is converted from physical to electronic form

INVESTORS RIGHTS & OBLIGATIONS

In case of dividend declaration, investors have a

right to receive the dividend within 30 days of declaration. Investors can wind up a scheme or even terminate the AMC if unit holders representing 75% of schemes assets pass a resolution to that respect. Investors have a right to be informed about changes in the fundamental attributes of a scheme. Lastly, investors can approach the investor relations officer for grievance redressal They must receive audited annual reports within 6 months from the financial year end