PRESENTED BY

HARSH ADHIYA- 01 KESHAV AGARWAL- 02 NEIL GALA- 09 ABHISHEK OZA- 20 YATIN PRABHU-25 DHAVAL SOLANKI-29

INTRODUCTION Mutual Funds Plays very important role for the growth and

development of any economy. They are vehicles for mobilizing the savings of investors towards

stock or securities market which is the barometer of the health of economy.

The Mutual fund over the years in India has shown tremendous growth both in terms of AMC and AUM.

Mutual fund becomes an attractive instrument of capital market for retail and institutional investors.

The main basic objective of mutual fund is to reduce risk and provide return.

MUTUAL FUND OPERATION FLOW CHART

HISTORY OF MUTUAL FUNDS

Phase 1- 1964-87:- In 1963, UTI was set up by Parliament under UTI act and given a monopoly. The first equity fund was launched in 1986.

Phase 2- 1987-93:- It was in 1986 that the Government of India amended banking regulations and allowed commercial banks in the public sector to set up Mutual Funds. This led to promotion of “SBI Mutual Fund” by State Bank of India in July 1987 followed by Canara Bank, Indian Bank, Bank of Baroda, Bank of India, Punjab National Bank, and GIC Mutual Fund.

CONT’D….

Phase 3- 1993-96:-The permission was given to the private sector funds including foreign funds management companies to enter the Mutual Fund industry in 1993. Private funds introduced innovative products, investment techniques and investors servicing technology during 1994.

Phase 4- 1996-2004:-The Mutual Fund industry witnessed robust growth and strict regulations from SEBI after 1996. Investors' interests were safe guarded by SEBI and the government offered tax benefit to the investors. Various investor awareness programmers were launched during this phase both by SEBI and Association of Mutual Fund in India (AMFI).

BY STRUCTURE

Open Ended Funds:

Close Ended Funds:

Interval Funds:

BY NATURE

Equity Funds:

Debt Funds:

Balanced Funds:

Gilt Funds:

BY INVESTMENT OBJECTIVE

Income Schemes:

Growth Schemes:

Balanced Schemes:

Money Market Schemes:

OTHER SCHEMES

Tax Saving:

Sector Specific:

Index:

Exchange Traded Fund:

ADVANTAGES

Portfolio Diversification:

Professional Management:

Low Transaction Cost:

Liquidity:

DISADVANTAGES

No Tailor-Made Portfolio:

No Control Over Cost:

Managing a Portfolio of Funds:

SPONSOR

The sponsor takes the initiative to launch and set up a mutual fund. It can be a registered company, scheduled bank or a financial institution.

The sponsor establishes the mutual fund and registers the same with SEBI.

Sponsor appoints the Trustees, custodians and the AMC with prior approval of SEBI and in accordance with SEBI Regulations.

The Sponsor is not responsible or liable for any loss or shortfall resulting from the operation of the Schemes beyond the initial contribution made by it towards setting up of the Mutual Fund.

TRUSTEE

The Trustees have a FIDUCIARY responsibility towards unit holders.

Trustee is usually a company (corporate body) or a Board of Trustees.

They check that the AMC’s investments are within the defined limits, that the fund’s assets are protected, and ensure that the unit holders get their due returns.

Trustees receive fees for their services.

ASSET MANAGEMENT COMPANY

The AMC is appointed by the Trustee as the Investment Manager of the Mutual Fund.

The AMC is required to be approved by the Securities and Exchange Board of India (SEBI) to act as an asset management company of the Mutual Fund.

An AMC takes investment decisions, compensates investors through dividends, maintains proper accounting and information for pricing of units, calculates the NAV, and provides information on listed schemes and secondary market unit transactions.

Examples are SBI MF, ICICI Prudential, Kotak MF etc.

"There are tons of people who are late to trends by nature and adopt a trend after it's no longer in fashion. They exist in mutual funds. They exist in clothes. They exist in cars. They exist in lifestyles." ~Jim Cramer

THANK YOU