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bank, FIs or a financial service company. For E.g. sponsor for Templeton Mutual Fund is Templeton international INC. Sponsor is responsible for setting up and establishing the mutual fund. appoints Asset Management Company(AMC), secure necessary approvals, periodically monitor AMC functions.
ORGANISATION OF MFs
Growth schemes
Income schemes
Interval schemes
Classification Discussed
S Open ended schemes:- is the one that an investor can buy or sell as
when they launch an offer, called New Fund Offer (NFO). Thereafter, these units are listed in stock exchanges where they are traded on daily basis. index funds. It is listed on stock exchange and like an open-ended fund it creates and redeems units in line with rise and fall of demand.
on continuing basis.
S No fixed maturity period. S Not listed in secondary market.
Structuring in ETF
ETF units
Cash
ETF units
cash
market value of the funds investment +receivable +accrued income liabilities-accrued expenses
Number of shares outstanding
Continues
obilized to sell back the asset to the seller in relation to repurchase agreement
S Standard deviation- equal to the square root of mean of the squares of
Continues
S BETA - beta of a fund measures its past price volatility relative to a
S ALFHA- Alpha measures the extra return earned on a scheme on a risk S Large cap- Larger companies worth $5 billion or more, like General
S Small cap - Smaller companies worth $250 million to $1 billion, like Hot
References of study
S http://finance.indiamart.com/india_business_information/
mutual_fund_companies.html
S www.wikipedia.com/finance S http://sunseven.hubpages.com/hub/The-Top-10-Mutual-Funds-in-
India
S Security Analysis & Portfolio Management Prassana & Chandra S Security Analysis & Portfolio Management- P. Pandian S http://www.e-investing.in/mutual-funds/106-reliance-mutual-fund-now-indias-
largest-mf.html