DOMBIVLI SHIKSHAN PRASARAK MANDAL’S

K. V. PENDHARKAR COLLEGE OF ARTS,

SCIENCE AND
COMMERCE(AUTONOMOUS).
Dombivli (East) 421203, Dist. Thane

TOPIC : Analysis of mutual funds and portfolio management in

mutual funds

SUBJECT : Financial management

STREAM : Bachelor in accounting and finance

NAME OF FACULTY : ASST.PROF. Bhakti pawaskar and prof. Premkumar Nair

NAME OF STUDENT : Nayana Ravindra Panigrahi

DIVISION : A

ROLLNO : 219159
 content

SR.NO PARTICULAR PG.NO

Analysis of mutual funds and portfolio management in
mutual funds

Introduction
Definition
Features
Importance

Literature Review On Forex dealings

Overview

Conclusion

Advantage and disadvantage

References

Links and books

 Analysis of mutual funds and portfolio management of mutual funds

INTRODUCTION

MUTUAL FUNDS: A mutual fund is a type of financial vehicle made up of

a pool of money collected from many investors to invest in securities
like stocks, bonds, money market instruments, and other assets.
Mutual funds are operated by professional money managers, who
allocate the fund's assets and attempt to produce capital gains or
income for the fund's investors. A mutual fund's portfolio is structured
and maintained to match the investment objectives stated in its
prospectus.
Mutual funds give small or individual investors access to professionally
managed portfolios of equities, bonds, and other securities. Each
shareholder, therefore, participates proportionally in the gains or
losses of the fund. Mutual funds invest in a vast number of securities,
and performance is usually tracked as the change in the total market
cap of the fund—derived by the aggregating performance of the
underlying investments.

DEFINITION:
“A mutual fund is an investment that pools your money with the money of an unlimited number of other
investors. In return, you and the other investors each own shares of the fund. The fund's assets are invested
according to an investment objective into the fund's portfolio of investments. Aggressive growth funds seek
long-term capital growth by investing primarily in stocks of fast-growing smaller companies or market segments.
Aggressive growth funds are also called capital appreciation funds”.
OBJECTIVE:
 To give a brief idea about the benefits available from Mutual Fund investment.
To give an idea of the types of schemes available.
To discuss about the market trends of Mutual Fund investment.
To study some of the mutual fund schemes.
To study Mutual Fund Distribution Channels.

To study Marketing strategies of Mutual Funds.

Explore the recent developments in the mutual funds in India.

To give an idea about the regulations of mutual funds.

Objectives of Portfolio Management

The fundamental objective of portfolio management is to help select best
investment options as per one’s income, age, time horizon and risk
appetite.

Some of the core objectives of portfolio management are as follows –

 Capital appreciation
 Maximising returns on investment
 To improve the overall proficiency of the portfolio
 Risk optimisation
 Allocating resources optimally
 Ensuring flexibility of portfolio
 Protecting earnings against market risks
Nonetheless, to make the most of portfolio management, investors should
opt for a management type that suits their investment pattern.

working of mutual funds:

 The mutual fund collects money directly or through brokers from investors. The money is invested in
various instruments depending on the objective of the scheme. The income generated by selling securities or
capital appreciation of these securities is passed on to the investors in proportion to their investment in the scheme.
The investments are divided into units and the value of the units will be reflected in Net Asset Value or NAV of
the unit. NAV is the market value of the assets of the scheme minus its liabilities. The per unit NAV is the net
asset value of the scheme divided by the number of units outstanding on the valuation date. Mutual fund
companies provide daily net asset value of their schemes to their investors. NAV is important, as it will determine
the price at which you buy or redeem the units of a scheme. Depending on the load structure of the scheme, you
have to pay entry or exit load.
STRUCTURE OF A MUTUAL FUND:
India has a legal framework within which Mutual Fund have to be constituted. In India open and close-end
funds operate under the same regulatory structure i.e. as unit Trusts. A Mutual Fund in India is allowed to issue
open-end and close-end schemes under a common legal structure. The structure that is required to be followed by
any Mutual Fund in India is laid down under SEBI (Mutual Fund) Regulations, 1996.
The Fund Sponsor:
Sponsor is defined under SEBI regulations as any person who, acting alone or in combination of another
corporate body establishes a Mutual Fund. The sponsor of the fund is akin to the promoter of a company as he gets
the fund registered with SEBI. The sponsor forms a trust and appoints a Board of Trustees. The sponsor also
appoints the Asset Management Company as fund managers. The sponsor either directly or acting through the
trustees will also appoint a custodian to hold funds assets. All these are made in accordance with the regulation
and guidelines of SEBI.
As per the SEBI regulations, for the person to qualify as a sponsor, he must contribute at least 40% of the
net worth of the Asset Management Company and possesses a sound financial track record over 5 years prior to
registration.

Mutual Funds as Trusts:

A Mutual Fund in India is constituted in the form of Public trust Act, 1882. The Fund sponsor acts as a
settlor of the Trust, contributing to its initial capital and appoints a trustee to hold the assets of the trust for the
benefit of the unit-holders, who are the beneficiaries of the trust. The fund then invites investors to contribute their
money in common pool, by scribing to “units” issued by various schemes established by the Trusts as evidence of
their beneficial interest in the fund.
It should be understood that the fund should be just a “pass through” vehicle. Under the Indian Trusts Act,
the trust of the fund has no independent legal capacity itself, rather it is the Trustee or the Trustees who have the
legal capacity and therefore all acts in relation to the trusts are taken on its behalf by the Trustees. In legal parlance
the investors or the unit-holders are the beneficial owners of the investment held by the Trusts, even as these
investments are held in the name of the Trustees on a day-to-day basis. Being public trusts, Mutual Fund can invite
any number of investors as beneficial owners in their investment schemes.

Trustees:
A Trust is created through a document called the Trust Deed that is executed by the fund sponsor in favour
of the trustees. The Trust- the Mutual Fund – may be managed by a board of trustees- a body of individuals, or a
trust company- a corporate body. Most of the funds in India are managed by Boards of Trustees. While the boards
of trustees are governed by the Indian Trusts Act, where the trusts are a corporate body, it would also require to
comply with the Companies Act, 1956. The Board or the Trust company as an independent body, acts as a
protector of the of the unit-holders interests. The Trustees do not directly manage the portfolio of securities. For
this specialist function, the appoint an Asset Management Company. They ensure that the Fund is managed by ht
AMC as per the defined objectives and in accordance with the trusts deeds and SEBI regulations.
The Asset Management Companies:
The role of an Asset Management Company (AMC) is to act as the investment manager of the Trust under
the board supervision and the guidance of the Trustees. The AMC is required to be approved and registered with
SEBI as an AMC. The AMC of a Mutual Fund must have a net worth of at least Rs. 10 Crores at all times.
Directors of the AMC, both independent and non-independent, should have adequate professional expertise in
financial services and should be individuals of high morale standing, a condition also applicable to other key
personnel of the AMC. The AMC cannot act as a Trustee of any other Mutual Fund. Besides its role as a fund
manager, it may undertake specified activities such as advisory services and financial consulting, provided these
activities are run independent of one another and the AMC’s resources (such as personnel, systems etc.) are
properly segregated by the activity. The AMC must always act in the interest of the unit-holders and reports to the
trustees with respect to its activities.

Custodian and Depositories:

Mutual Fund is in the business of buying and selling of securities in large volumes. Handling these
securities in terms of physical delivery and eventual safekeeping is a specialized activity. The custodian is
appointed by the Board of Trustees for safekeeping of securities or participating in any clearance system through
approved depository companies on behalf of the Mutual Fund and it must fulfill its responsibilities in accordance
with its agreement with the Mutual Fund. The custodian should be an entity independent of the sponsors and is
required to be registered with SEBI. With the introduction of the concept of dematerialization of shares the
dematerialized shares are kept with the Depository participant while the custodian holds the physical securities.
Thus, deliveries of a fund’s securities are given or received by a custodian or a depository participant, at the
instructions of the AMC, although under the overall direction and responsibilities of the Trustees.

Bankers:
A Fund’s activities involve dealing in money on a continuous basis primarily with respect to buying and
selling units, paying for investment made, receiving the proceeds from sale of the investments and discharging its
obligations towards operating expenses. Thus the Fund’s banker plays an important role to determine quality of
service that the fund gives in timely delivery of remittances etc.

Transfer Agents:
Transfer agents are responsible for issuing and redeeming units of the Mutual Fund and provide other
related services such as preparation of transfer documents and updating investor records. A fund may choose to
carry out its activity in-house and charge the scheme for the service at a competitive market rate. Where an outside
Transfer agent is used, the fund investor will find the agent to be an important interface to deal with, since all of
the investor services that a fund provides are going to be dependent on the transfer agent.

REGULATORY STRUCTURE OF MUTUAL FUNDS IN INDIA:

The structure of mutual funds in India is guided by the SEBI. Regulations, 1996.These regulations make it
mandatory for mutual fund to have three structures of sponsor trustee and asset Management Company. The
sponsor of the mutual fund and appoints the trustees. The trustees are responsible to the investors in mutual fund
and appoint the AMC for managing the investment portfolio. The AMC is the business face of the mutual fund, as
it manages all the affairs of the mutual fund. The AMC and the mutual fund have to be registered with SEBI.
Types of mutual funds

BY STRUCTURE

1. Open - Ended Schemes:

An open-end fund is one that is available for subscription all through the year. These do not have a fixed
maturity. Investors can conveniently buy and sell units at Net Asset Value ("NAV") related prices. The key feature
of open-end schemes is liquidity.

2. Close - Ended Schemes:

A closed-end fund has a stipulated maturity period which generally ranging from 3 to 15 years. The fund is
open for subscription only during a specified period. Investors can invest in the scheme at the time of the initial
public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where they are
listed. In order to provide an exit route to the investors, some close-ended funds give an option of selling back the
units to the Mutual Fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate that at
least one of the two exit routes is provided to the investor.

3. Interval Schemes:
Interval Schemes are that scheme, which combines the features of open-ended and close-ended schemes.
The units may be traded on the stock exchange or may be open for sale or redemption during pre-determined
intervals at NAV related prices.

B). BY NATURE
1. Equity Fund:
These funds invest a maximum part of their corpus into equities holdings. The structure of the fund may
vary different for different schemes and the fund manager’s outlook on different stocks. The Equity Funds are
sub-classified depending upon their investment objective, as follows:
  Diversified Equity Funds
 Mid-Cap Funds
 Sector Specific Funds
 Tax Savings Funds (ELSS)

Equity investments are meant for a longer time horizon, thus Equity funds rank high on the risk-return
matrix.

2. Debt Funds:
The objective of these Funds is to invest in debt papers. Government authorities, private companies, banks
and financial institutions are some of the major issuers of debt papers. By investing in debt instruments, these
funds ensure low risk and provide stable income to the investors. Debt funds are further classified as:
 Gilt Funds: Invest their corpus in securities issued by Government, popularly known as Government
of India debt papers. These Funds carry zero Default risk but are associated with Interest Rate risk. These
schemes are safer as they invest in papers backed by Government.

 Income Funds: Invest a major portion into various debt instruments such as bonds, corporate
debentures and Government securities.

 MIPs: Invests maximum of their total corpus in debt instruments while they take minimum exposure in
equities. It gets benefit of both equity and debt market. These scheme ranks slightly high on the risk-return
matrix when compared with other debt schemes.
 Short Term Plans (STPs): Meant for investment horizon for three to six months. These funds
primarily invest in short term papers like Certificate of Deposits (CDs) and Commercial Papers (CPs).
Some portion of the corpus is also invested in corporate debentures.

 Liquid Funds: Also known as Money Market Schemes, These funds provides easy liquidity and
preservation of capital. These schemes invest in short-term instruments like Treasury Bills, inter-bank call
money market, CPs and CDs. These funds are meant for short-term cash management of corporate houses
and are meant for an investment horizon of 1day to 3 months. These schemes rank low on risk-return
matrix and are considered to be the safest amongst all categories of mutual funds.

3. Balanced Funds:
As the name suggest they, are a mix of both equity and debt funds. They invest in both equities and fixed
income securities, which are in line with pre-defined investment objective of the scheme. These schemes aim to
provide investors with the best of both the worlds. Equity part provides growth and the debt part provides stability
in returns.

Further the mutual funds can be broadly classified on the basis of investment parameter viz,
Each category of funds is backed by an investment philosophy, which is pre-defined in the objectives of the fund.
The investor can align his own investment needs with the funds objective and invest accordingly.

C). BY INVESTMENT OBJECTIVE:

Growth Schemes:
 Growth Schemes are also known as equity schemes. The aim of these schemes is to provide capital
appreciation over medium to long term. These schemes normally invest a major part of their fund in equities and
are willing to bear short-term decline in value for possible future appreciation.

Income Schemes:
Income Schemes are also known as debt schemes. The aim of these schemes is to provide regular and
steady income to investors. These schemes generally invest in fixed income securities such as bonds and corporate
debentures. Capital appreciation in such schemes may be limited.

Balanced Schemes:
Balanced Schemes aim to provide both growth and income by periodically distributing a part of the income
and capital gains they earn. These schemes invest in both shares and fixed income securities, in the proportion
indicated in their offer documents (normally 50:50).

Money Market Schemes:

Money Market Schemes aim to provide easy liquidity, preservation of capital and moderate income. These
schemes generally invest in safer, short-term instruments, such as treasury bills, certificates of deposit, commercial
paper and inter-bank call money.

Load Funds:
A Load Fund is one that charges a commission for entry or exit. That is, each time you buy or sell units in
the fund, a commission will be payable. Typically entry and exit loads range from 1% to 2%. It could be worth
paying the load, if the fund has a good performance history.

No-Load Funds:
A No-Load Fund is one that does not charge a commission for entry or exit. That is, no commission is
payable on purchase or sale of units in the fund. The advantage of a no load fund is that the entire corpus is put to
work.

OTHER SCHEMES
Tax Saving Schemes:
Tax-saving schemes offer tax rebates to the investors under tax laws prescribed from time to time. Under
Sec.88 of the Income Tax Act, contributions made to any Equity Linked Savings Scheme (ELSS) are eligible for
rebate.

Index Schemes:
Index schemes attempt to replicate the performance of a particular index such as the BSE Sensex or the
NSE 50. The portfolio of these schemes will consist of only those stocks that constitute the index. The percentage
of each stock to the total holding will be identical to the stocks index weightage. And hence, the returns from such
schemes would be more or less equivalent to those of the Index.

Sector Specific Schemes:

These are the funds/schemes which invest in the securities of only those sectors or industries as specified in the
offer documents. e.g. Pharmaceuticals, Software, Fast Moving Consumer Goods (FMCG), Petroleum stocks, etc.
The returns in these funds are dependent on the performance of the respective sectors/industries. While these funds
may give higher returns, they are more risky compared to diversified funds. Investors need to keep a watch on the
performance of those sectors/industries and must exit at an appropriate time.
NET ASSET VALUE (NAV):
Since each owner is a part owner of a mutual fund, it is necessary to establish the value of his part. In other
words, each share or unit that an investor holds needs to be assigned a value. Since the units held by investor
evidence the ownership of the fund’s assets, the value of the total assets of the fund when divided by the total
number of units issued by the mutual fund gives us the value of one unit. This is generally called the Net Asset
Value (NAV) of one unit or one share. The value of an investor’s part ownership is thus determined by the NAV
of the number of units held.

Calculation of NAV:

Let us see an example. If the value of a fund’s assets stands at Rs. 100 and it has 10 investors who have
bought 10 units each, the total numbers of units issued are 100, and the value of one unit is Rs. 10.00 (1000/100). If
a single investor in fact owns 3 units, the value of his ownership of the fund will be Rs. 30.00(1000/100*3). Note
that the value of the fund’s investments will keep fluctuating with the market-price movements, causing the Net
Asset Value also to fluctuate. For example, if the value of our fund’s asset increased from Rs. 1000 to 1200, the
value of our investors holding of 3 units will now be (1200/100*3) Rs. 36. The investment value can go up or down,
depending on the markets value of the fund’s assets.

Types of Portfolio Management

In a broader sense, portfolio management can be classified under 4 major
types, namely –

 Active portfolio management

In this type of management, the portfolio manager is mostly concerned
with generating maximum returns. Resultantly, they put a significant share
of resources in the trading of securities. Typically, they purchase stocks
when they are undervalued and sell them off when their value increases.

 Passive portfolio management

This particular type of portfolio management is concerned with a fixed
profile that aligns perfectly with the current market trends. The managers
are more likely to invest in index funds with low but steady returns which
may seem profitable in the long run.

 Discretionary portfolio management

In this particular management type, the portfolio managers are entrusted
with the authority to invest as per their discretion on investors’ behalf.
Based on investors’ goals and risk appetite, the manager may choose
whichever investment strategy they deem suitable.

 Non-discretionary management
Under this management, the managers provide advice on investment
choices. It is up to investors whether to accept the advice or reject it.
Financial experts often recommended investors to weigh in the merit of
professional portfolio managers’ advice before disregarding them entirely.

Types of Mutual Funds

Mutual funds are divided into several kinds of categories, representing
the kinds of securities they have targeted for their portfolios and the
type of returns they seek. There is a fund for nearly every type of
investor or investment approach. Other common types of mutual funds
include money market funds, sector funds, alternative
funds, smart-beta funds, target-date funds, and even funds of funds,
or mutual funds that buy shares of other mutual funds.

Equity Funds
The largest category is that of equity or stock funds. As the name
implies, this sort of fund invests principally in stocks. Within this group
are various subcategories. Some equity funds are named for the size
of the companies they invest in: small-, mid-, or large-cap. Others are
named by their investment approach: aggressive growth,
income-oriented, value, and others. Equity funds are also categorized
by whether they invest in domestic (U.S.) stocks or foreign equities.
There are so many different types of equity funds because there are
many different types of equities. A great way to understand the
universe of equity funds is to use a style box, an example of which is
below.

Fixed-Income Funds
Another big group is the fixed income category. A fixed-income
mutual fund focuses on investments that pay a set rate of return, such
as government bonds, corporate bonds, or other debt instruments. The
idea is that the fund portfolio generates interest income, which it then
passes on to the shareholders.
Balanced Funds
Balanced funds invest in a hybrid of asset classes, whether stocks,
bonds, money market instruments, or alternative investments. The
objective is to reduce the risk of exposure across asset classes.This
kind of fund is also known as an asset allocation fund. There are two
variations of such funds designed to cater to the investors objectives.

Money Market Funds

The money market consists of safe (risk-free), short-term debt
instruments, mostly government Treasury bills. This is a safe place to
park your money. You won't get substantial returns, but you won't have
to worry about losing your principal. A typical return is a little more than
the amount you would earn in a regular checking or savings account
and a little less than the average certificate of deposit (CD). While
money market funds invest in ultra-safe assets, during the 2008
financial crisis, some money market funds did experience losses after
the share price of these funds, typically pegged at $1, fell below that
level and broke the buck.

Income Funds
Income funds are named for their purpose: to provide current income
on a steady basis. These funds invest primarily in government and
high-quality corporate debt, holding these bonds until maturity in order
to provide interest streams. While fund holdings may appreciate in
value, the primary objective of these funds is to provide steady cash
flow to investors. As such, the audience for these funds consists of
conservative investors and retirees. Because they produce regular
income, tax-conscious investors may want to avoid these funds.

International/Global Funds
An international fund (or foreign fund) invests only in assets located
outside your home country. Global funds, meanwhile, can invest
anywhere around the world, including within your home country. It's
tough to classify these funds as either riskier or safer than domestic
investments, but they have tended to be more volatile and have unique
country and political risks. On the flip side, they can, as part of a
well-balanced portfolio, actually reduce risk by
increasing diversification, since the returns in foreign countries may be
uncorrelated with returns at home. Although the world's economies are
becoming more interrelated, it is still likely that another economy
somewhere is outperforming the economy of your home country.

Specialty Funds
This classification of mutual funds is more of an all-encompassing
category that consists of funds that have proved to be popular but
don't necessarily belong to the more rigid categories we've described
so far. These types of mutual funds forgo broad diversification to
concentrate on a certain segment of the economy or a targeted
strategy. Sector funds are targeted strategy funds aimed at specific
sectors of the economy, such as financial, technology, health, and so
on. Sector funds can, therefore, be extremely volatile since the stocks
in a given sector tend to be highly correlated with each other. There is
a greater possibility for large gains, but a sector may also collapse (for
example, the financial sector in 2008 and 2009).

Regional funds make it easier to focus on a specific geographic area

of the world. This can mean focusing on a broader region (say Latin
America) or an individual country (for example, only Brazil). An
advantage of these funds is that they make it easier to buy stock in
foreign countries, which can otherwise be difficult and expensive. Just
like for sector funds, you have to accept the high risk of loss, which
occurs if the region goes into a bad recession.

Socially responsible funds (or ethical funds) invest only in companies

that meet the criteria of certain guidelines or beliefs. For example,
some socially responsible funds do not invest in "sin" industries such
as tobacco, alcoholic beverages, weapons, or nuclear power. The idea
is to get competitive performance while still maintaining a healthy
conscience. Other such funds invest primarily in green technology,
such as solar and wind power or recycling.

Exchange Traded Funds (ETFs)

A twist on the mutual fund is the exchange traded fund (ETF). These
ever more popular investment vehicles pool investments and employ
strategies consistent with mutual funds, but they are structured as
investment trusts that are traded on stock exchanges and have the
added benefits of the features of stocks. For example, ETFs can be
bought and sold at any point throughout the trading day. ETFs can also
be sold short or purchased on margin. ETFs also typically carry lower
fees than the equivalent mutual fund. Many ETFs also benefit from
active options markets, where investors can hedge or leverage their
positions. ETFs also enjoy tax advantages from mutual
funds. Compared to mutual funds, ETFs tend to be more cost effective
and more liquid. The popularity of ETFs speaks to their versatility and
convenience.
History of mutual funds
The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the initiative of
the Government of India and Reserve Bank of India. The history of mutual funds in India can be broadly
divided into four distinct phases
First Phase - 1964-1987

Unit Trust of India (UTI) was established in 1963 by an Act of Parliament. It was set up by the Reserve
Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of
India. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took
over the regulatory and administrative control in place of RBI. The first scheme launched by UTI was Unit
Scheme 1964. At the end of 1988 UTI had Rs. 6,700 crores of assets under management.
Second Phase - 1987-1993 (Entry of Public Sector Funds)

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 followed by Canbank Mutual Fund (Dec 87),
Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90),
Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual fund in June 1989 while GIC had set up
its mutual fund in December 1990. At the end of 1993, the mutual fund industry had assets under
management of Rs. 47,004 crores.
Third Phase - 1993-2003 (Entry of Private Sector Funds)

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. Also, 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. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private
sector mutual fund registered in July 1993. The 1993 SEBI (Mutual Fund) Regulations were substituted by
a more comprehensive and revised Mutual Fund Regulations in 1996. The industry now functions under
the SEBI (Mutual Fund) Regulations 1996. The number of mutual fund houses went on increasing, with
many foreign mutual funds setting up funds in India and also the industry has witnessed several mergers
and acquisitions. As at the end of January 2003, there were 33 mutual funds with total assets of Rs.
1,21,805 crores. The Unit Trust of India with Rs. 44,541 crores of assets under management was way
ahead of other mutual funds.
Fourth Phase - since February 2003

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two
separate entities. 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, representing broadly, the assets of US
64 scheme, assured return and certain other schemes. The Specified Undertaking of Unit Trust of India,
functioning under an administrator and under the rules framed by Government of India and does not
come under the purview of the Mutual Fund Regulations. The second is the UTI Mutual Fund, sponsored
by SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations.
With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs. 76,000 crores of assets
under management and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund
Regulations, and with recent mergers taking place among different private sector funds, the mutual fund
industry has entered its current phase of consolidation and growth.