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MF Governed by SEBI
Registered under SEBI and constituted under Indian Trust Act 1882
AMC’s registered as company under Companies Act 1956
Commercial Banks can Directly take up Mutual Fund Business
Sponsors
A Sponsor is the person who, acting alone is in combination with another body or corporate, establishes a mutual fund and applies to SEBI for its registration. The sponsor is also closely associated with the AMC. As per SEBI regulation the sponsor has to contribute a minimum of 40% of the net worth of the AMC.
Trustee
A person or a group of persons having an overall supervisory authority over the fund managers. They assure that the managers keep to the trust deed, that the unit prices are calculated correctly and the assets of the funds are held safely.
AMC
It is the investment manager for the mutual fund. It is a company set up primarily for managing the investment of mutual funds and makes investment decisions in accordance with the scheme objectives, deed of trust and other provisions of the investment management agreement.
Custodian
The bank or trust company that maintains a mutual fund's assets, including its portfolio of securities or some record of them. The custodian provides safekeeping of securities but has no role in portfolio management. In general it is the keeper of funds securities and other assets.
RTA
Registrar or transfer agents are the trusts or institutions that register and maintain detailed records of the transactions of investors for the convenience of mutual fund houses.
Sponsors – SBI/PNB/Bank of Baroda/LIC
Trustee – UTI Trustee co (P) Ltd
AMC – UTI Asset Management Company
Custodian – Citibank / Stock Holding Corporation of India Ltd
Phase 1 – 1964-87 UTI est. (UTI was delinked in 1987 controlled by IDBI)
Phase 2 – 1987-93 Public Sector to Mutual Fund (GIC, LIC) [SBI{1st mover}, PNB, CAN]
Phase 3 – 1993-2003 Private Sector entry. SEBI comes into act.
Based on Investment Objective
Equity funds
• Global/international funds
• Specialty funds
• Sector funds
• Regional funds
• Socially Responsible funds
• Index Funds
• Tax Saving Scheme
• Real Estate funds
Bonds/Income Funds
• Income Scheme
• Liquid Income Scheme
• Money market schemes
• Gilt funds
Hybrid/Balanced Funds
Based on Constitution
Open Ended funds
Closed Ended funds
Interval funds
Global/International FundsSchemes with a mandate to invest the majority of their assets in
overseas markets/ global commodities will form part of this category. Fund of funds dedicated to overseas markets will also form part of this category.
Specialty FundsA mutual fund specializing in the securities of a particular industry
or group of industries or special types of securities. Sector FundsA stock mutual, exchange-traded or closed-end fund that invests
solely in businesses that operate in a particular industry or sector of the economy. Because the holdings of this type of fund are in the same industry, there is an inherent lack of diversification associated with these funds.
Regional Funds
A mutual fund that confines itself to investments in securities from a specified geographical area, such as Latin America, Europe or Asia. A regional mutual fund will generally look to own a diversified portfolio of companies based in and operating out of its specified geographical area. However, some regional funds can also be set up to invest in a specific segment of the region's economy, such as energy.
Socially Responsible Funds
socially responsible investing strategy is one that views successful investment returns and responsible corporate behavior as going hand in hand. SRI investors believe that by combining certain social criteria with rigorous investment standards, they can identify securities that will earn competitive returns and help build a better world.
Index Funds
A type of mutual fund with a portfolio constructed to match or track the components of a market index, such as the Standard & Poor's 500 Index (S&P 500). An index mutual fund is said to provide broad market exposure, low operating expenses and low portfolio turnover.
Tax Saving Funds
Tax-saving funds cater to the investors' need of minimizing tax burden on the returns from investments. They are also called equity-linked tax saving funds or ELSS. These funds are market capitalization agnostic. These are close ended schemes with a lock-in period of 3 years.
Income SchemeA type of mutual fund that emphasizes current income, either on a
monthly or quarterly basis, as opposed to capital appreciation. Such funds hold a variety of government, municipal and corporate debt obligations, preferred stock, money market instruments, and dividend-paying stocks.
Liquid FundsA liquid fund is the same as a money market fund, but avoids a
lock-in period. Money Market SchemesMoney 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
Gilt FundsA mutual fund that invests in several different types of medium
and long-term government securities in addition to top quality corporate debt. Gilts originated in Britain. [email protected]
Open Ended Fund
A type of mutual fund that does not have restrictions on the amount of shares the fund will issue. If demand is high enough, the fund will continue to issue shares no matter how many investors there are. Open-end funds also buy back shares when investors wish to sell.
Close Ended Fund
A closed-end fund is a publicly traded investment company that raises a fixed amount of capital through an initial public offering (IPO). The fund is then structured, listed and traded like a stock on a stock exchange. Also known as a "closed-end investment" or "closed-end mutual fund."
Interval Funds
A fund that combines the features of open-ended and closed-ended schemes, making the fund open for sale or redemption during pre-determined intervals.
India – Mutual Fund
UK – OEIC (Open Ended Investment Company)
USA – Unit Trust
Germany – Spezial Fonds
France – Sicav/ Fondos Communs De Placement
