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MUTUAL FUND.

WHAT IS MUTUAL FUND?


A Mutual Fund is a body corporate
registered with the Securities and
Exchange Board of India (SEBI), that
pools up the money from individual /
corporate investors and invests the same
on behalf of the investors /unit holders, in
equity shares, Government securities,
Bonds, Call money markets etc., and
distributes the profits.
MAIN FUNCTION

TO MOBILIZE THE SAVING OF THE GENERAL PUBLIC


AND INVEST THEM IN STOCK MARKET SECURITIES

REGULATION 0F MUTUAL FUNDS

SEBI HAS THE AUTHORITY TO LAY GUIDELINES ,


SUPERVISE AND REGULATE THE WORKING OFMUTUAL .
HISTORY OF INDIAN MUTUAL
FUND INDUSTRY
 THE MF INDUSTRY IN INDIA WAS
STARTED IN 1963.
 UTI WAS ESTABLISHED IN 1963 BY AN
ACT OF PARLIAMENT & US-64 WAS THE
1st SCHEME LAUNCHED BY UTI IN 1964.
 IN 1987 PUBLIC SECTOR ENTERED IN
MUTUAL FUND INDUSTRY.
 IN 1993 WITH THE ENTRY OF PVT.
SECTOR NEW ERA STARTED IN THE
INDIAN MUTUAL FUND INDUSTRY.
The Mutual Fund Operation cycle
TOTAL ASSET – TOTAL LIABILITIES
NAV = NO. OF UNITS OUTSTANDING
Type of Mutual Fund
Schemes
OPEN ENDED SCHEMES
By Structure AimsDoOffernotprovide
to
Aims issue
tax
at
CLOSE ENDED SCHEMES Investors
Aims
UnitsThis
capital atare
for
providing
Aims
rebates toeasy
free to join
providing
category
Repurchase,
appreciation
Sectoral
provide
to the
liquidity,
the fund
includes
both
redemption
Over
investors
regular
funds
preservation theunder
&
orgrowth
withdraw
Index &
GROWTH SCHEMES On
steady
the
are
of a
medium periodic
tax
ideal to
income
capital lawsfor
&
from
Schemes
income. thethat
Basis.
long
investors
to Units
term.
prescribed.
moderate
investors. whocan
By Investment INCOME SCHEMES Idealfund
attempt for
Be
Ideal
Eg., redeemed
income.
have
for
Equity
retired
at anyto time
Investors
Objectives BALANCED SCHEMES Linked Only
people
Ideal
already
after
on
Savings
for
an&
looking
replicate
Termination
investors forin&
Corporates
Others,
decided
Schemes
Initial with
lock-into
MONEY MARKET SCHEMES
theirOfthe
athe
prime
theIndividual
invest
(ELSS).
period.need in
for
You
performance
combination
scheme,
earning or
years,
investors
Ideal
acanparticular
capital
scheme
buy as& a
of
Of
Through
who a
are
TAX SAVING SCHEMES means
stability
Sector
for
sell to atpark
&
Other particular
Income
Dealings
seeking &
in the
theirunits orgrowth
Investors
regular
surplus
at
SPECIAL SCHEMES Index
moderate
Secondary such
Schemes funds
NAVover
Segment
seeking
income
as
for the
short
related
growththe
SECTOR SCHEMES tax market
long term
rebates
periods
BSE or NSE 50
Advantages of Investing
in Mutual Funds

Tax
Most
benefits
Funds
Disclosure
Most open
allowing
Mutual
ended
Easy offunds
to
Diversified
switching
Portfolio
Funds
redeem
invest and
portfolio
between
Capital
areto
within
easy
funds.
Gains
leads
3regulated
NAV
working
redeem
to risk
by SEBI.
declared
days.
From
Tax-free
debt
control
daily
Plus Dividends
to equity
etc.
The present Indian Mutual Fund Industry looks different

UTI
Pvt Sector
Rs. 90,587 crores AUM as
65%
28% on March 2001

Public Sector Pvt Sector


7%
8% UTI
82%
Public Sector
10%

Rs. 65,828 crores AUM as on


Dec 1998