PRESENTED BYS.RAGHAVI N.

KAVITHA

A Mutual Fund is an intermediary that pools money from a number of investors and invests the same in a variety of different financial instruments. The income earned through these investments and the capital appreciation realized by the scheme is shared by the investors or Unit Holders, in proportion to the number of units owned by them. Mutual funds can thus be considered as financial intermediaries that collect funds from investors and invest it on their behalf. The losses and gains accrue to the investors only.

HISTORY OF MUTUAL FUNDThe mutual fund industry in india started in1963 with the formation of Unit Trust Of India. The first and for the long the largest scheme was Unit scheme 1964 also known as US-64.It was also the first partly open-ended scheme. Mastershare was the first diversified equity investment scheme in india. 1987 marked the entry of public sector mutual funds. SBI established the first non UTI mutual fund in 1987 followed by Canbank mutual fund, LIC,Indian bank mutual fund,Bank of india mutual fund ,GIC and PNB.

 Open

ended funds Close ended fund Interval fund Debt fund Equity fund Hybrid fund Other fund

OPEN ENDED FUNDOpen ended funds are open for investor to enter or exit at any time ,even after the NFO.

CLOSE ENDED FUNDClose ended scheme have a fixed maturity. Investor can buy units of a close ended scheme ,from the fund,only during its NFO.

 Gilt

fund
debt fund

Divesified Fixed

maturity plans rate bonds

Floating Liquid

scheme

 Diversified
Sector

equity fund

fund fund

Thematic Equity

linked saving scheme fund

Arbitrage

 Monthly Capital

income plan

protected scheme

 Groth Dividend

payout Dividend reinvestment

Mutual fund offer investor the opportunity to earn income through professional management. Risk is diversified by portfolio diversification. Proper liquidity of the investor fund. Mutual fund are not liable to pay tax on the income they earn. Convenient option for the investor. Regulatory comfort in mutual fund because SEBI has mandated strict checks and balances in the structure of mutual fund and their activities.