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    Muralidharan Puliyassery
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    Mutual funds pool money from investors and invest it in a portfolio of securities like stocks and bonds. They offer investors a way to invest in a broad range of assets with a small amount of money. Mutual funds have grown significantly in India since the 1960s and now offer various types of funds focused on objectives like growth, income, sector-specific investing, and more. While mutual funds provide access to professional management and diversification, they also involve costs and potential dilution of returns.

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    Mutual Funds

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    Mutual funds pool money from investors and invest it in a portfolio of securities like stocks and bonds. They offer investors a way to invest in a broad range of assets with a small amount of money. Mutual funds have grown significantly in India since the 1960s and now offer various types of funds focused on objectives like growth, income, sector-specific investing, and more. While mutual funds provide access to professional management and diversification, they also involve costs and potential dilution of returns.

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    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    13 views18 pages

    Mutual Funds Mutual Funds Mutual Funds Mutual Funds

    Uploaded by

    Muralidharan Puliyassery
    Mutual funds pool money from investors and invest it in a portfolio of securities like stocks and bonds. They offer investors a way to invest in a broad range of assets with a small amount of money. Mutual funds have grown significantly in India since the 1960s and now offer various types of funds focused on objectives like growth, income, sector-specific investing, and more. While mutual funds provide access to professional management and diversification, they also involve costs and potential dilution of returns.

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    MUTUAL FUNDS

    MUTUAL FUNDS
    Mutual fund is a mechanism for pooling the resources by issuing units to the investors and investing funds in securities in accordance with objectives as disclosed in offer document.

    HISTORY OF MUTUAL FUNDS IN INDIA


    First Phase 1964-87 1964Second Phase 1987-1993 (Entry of Public 1987Sector Funds) Third Phase 1993-2003 (Entry of Private 1993Sector Funds) Fourth Phase since February 2003

    How is a mutual fund set up?


    A mutual fund is set up in the form of a trust, which has Sponsor Trustees Asset management company (AMC) Custodian

    Key terms
    Net Asset Value Sale price Repurchase price Redemption price Sales load Repurchase or Back end load Portfolio

    Types of Mutual Fund Schemes


    By structure OpenOpen-ended CloseClose-ended By Investment Objective Growth / Equity Oriented Scheme Income / Debt Oriented Scheme Balanced Fund Money Market or Liquid Fund Gilt Fund Other schemes Tax Saving Schemes Index Funds sector specific funds/schemes

    Options/plans
    Growth, Dividends, Reinvestment option Systematic Investment plan Systematic withdrawal plan Switching Gift

    Selection of a fund
    Objective of fund Consistency of performance Cost of operation Investor servicing Market trends Transparency of the fund management

    Risks
    Market risk Scheme risk Investment risk Business risk Political risk

    Facilities available to investors


    Repurchase facility Reissue facility Roll over facility Lateral shifting facility

    Investors rights
    Unit certificates Transfer of units Refund of application money Audited annual report

    Mutual fund companies


    AIG Global Investments Bharti AXA Birla sunlife Fortis Franklin Templeton HSBC ING Optimix JP Morgan LIC Mirae Asset Morgan Stanley Principal Reliance Religare AEGON Sahara Mutual fund SBI Mutual fund Taurus mutual fund Tata mutual fund UTI mutual fund

    Importance of Mutual Funds


    Canalising savings for investment Offering wide portfolio investment Providing better yields Rendering expertise investment service at low cost Offering tax benefits Providing grater affordability and liquidity Supporting capital market Reducing cost of new issues

    Advantages and disadvantages


    Advantages Professional management Diversification Economies of scale Liquidity Simplicity Disadvantages Cost Dilution

    Thank you

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