An Overview of MUTUAL FUND

BY: ALTAF AHMAD

Flow

What is Mutual Fund Evolution of Mutual Fund-Indian Perspective Types of Mutual Fund NAV Advantages

Mutual Fund
A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal.

Evolution

1963- Unit Trust of India 1964-87- First Phase 1987-1993 Second Phase 1993-2003 Third Phase Since February 2003

1963-87

Unit Trust of India formation by R.B.I in 1963 1978-IDBI takes over functionalities from R.B.I 1988- Assets Under Management (AUM) Rs.6,700 cr.

1987-1993 Second Phase

1987-Marked entry of Public Sector Banks. LIC and GIC June 87-S.B.I was first Non-Unit Trust of India institution to set-up the Mutual Fund 1989-LIC Entered the Mutual Fund Space 1990- GIC Entered the Mutual Fund Markets

1993-2003 Third Phase

1993-Entry of Private Players SEBI Laid Guidelines for all players except Unit Trust of India 1996- SEBI(Mutual Fund) Regulations passed 2003- 33 Mutual Fund Players were in the Indian Market 2003- AUM 1,21,805 cr.

2003-Onwards

Unit Trust of India Bi-fircated into two entities UTI-Mutual Fund, sponsored by SBI, PNB, BOB and LIC UTI-Mutual Fund governed by SEBI Regulations 1996 Unit Trust of India only covers US-64

2003-Onwards

Consolidation of the Mutual Fund Houses Begins

Types of Mutual Fund

Open Ended Fund

Closed Ended Fund

Open Ended-Mutual Fund

Issue and redeem shares on a continuous basis, and grow or shrink in response to investor demand for their shares.

Close Ended-Mutual Fund

Closed-end mutual funds are actively managed funds that raise capital only once, by issuing a fixed number of shares.

Net Asset Value (NAV)

NAV is defined as the value of each share of mutual fund and it is usually expressed as per-share amount. Net Asset Value is calculated on a daily basis after the trading closes.

Advantages

Professionally Managed Easy access to Liquidity Numerous Option of Investments Low Risk-Highly Diversified Portfolio Tax Benefits

Thank You

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