INTRODUCTION

A mutual fund is an investment vehicle that is made up of a pool of funds collected from
many investors for the purpose of investing in securities such as stocks, bonds, money market
instruments and similar assets. Mutual funds are operated by money managers, who invest
the funds capital and attempt to produce capital gains and income for the funds investors. A
mutual funds portfolio is structured and maintained to match the investment objectives stated
in its prospectus.
Association of Mutual Funds of India give answer to the question what is a
Mutual fund as follows:Simply put, the money pooled in by a large number of investors is
what makes up a Mutual Fund. This money is then managed by a professional Fund Manager,
who uses his investment management skills to invest it in various financial instruments.
As an investor you own units, which basically represent the portion of the
fund that you hold, based on the amount invested by you. Therefore, an investor can also be
known as a unit holder. The increase in value of the investments along with other incomes
earned from it is then passed on to the investors / unit holders in proportion with the number
of units owned after deducting applicable expenses, load and taxes.
The first introduction of a mutual fund in India occurred in 1963, when the
Government of India launched Unit Trust of India (UTI).UTI enjoyed a monopoly in the Indian mutual fund market until 1987, when a host of other government-controlled Indian financial companies established their own funds, including State Bank of India, Canara Bank, and
Punjab National Bank. This market was made open to private players in 1993, as a result of
the historic constitutional amendments brought forward by the then Congress-led government
under the existing regime of Liberalization, Privatization and Globalization (LPG). The first
private sector fund to operate in India was Kothari Pioneer, which later merged with Franklin
Templeton. In 1996, SEBI, the regulator of mutual funds in India, formulated the Mutual Fund
Regulation which is a comprehensive regulatory framework.
Despite being available in the market less than 10% of Indian households
have invested in mutual funds.[citation needed] A recent report on Mutual Fund Investments
in India published by research and analytics firm, Boston Analytics, suggests investors are
holding back from putting their money into mutual funds due to their perceived high risk and
a lack of information on how mutual funds work. There are 46 Mutual Funds as of June 2013.

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There are many mutual fund companies who fascilitates the mutual fund investment for the
public. Some of the mutual companies are described below.
STANDARD CHARTERED MUTUAL FUND:
Standard Chartered Bank was setup on March 13 2000 sponsored by Standard Chartered
Bank, and it was incorporated with SEBI on December 20 1999 .Standard Chartered Bank
acts as a distributor for mutual funds and referer for various other third party financial products.
FRANKLIN TEMPLETON INDIA MUTUAL FUND:
The company was founded in 1947 in New York by Rupert H. Johnson, Sr., who ran a successful retail brokerage firm from an office on Wall Street. He named the company for US
founding father Benjamin Franklin because Franklin epitomised the ideas of frugality and
prudence when it came to saving and investing. The companys first line of mutual funds,
Franklin Custodian Funds, was a series of conservatively managed equity and bond funds
designed to appeal to most investors.

By bringing together multiple, world-class investment teams in a single

firm, they able to offer specialized expertise across styles and asset classes, all supported by
the strength and resources of one of the worlds largest asset managers. This has helped company become a trusted partner to individual and institutional investors across the globe.
All of Franklin Templeton investment teams share a common commitment to excellence
grounded in rigorous, fundamental research and robust, disciplined risk management. Decade
after decade, their consistent, research-driven processes have helped Franklin Templeton earn
an impressive record of strong, long-term results.
MORGAN STANLEY MUTUAL FUND INDIA:
Morgan Stanley investment Management established in the year 1975. It gives customized
asset management to every fields. This is the first close and diversified equity scheme serving
the needs of Indian retail investors focusing on a long term capital appreciation.
ESCORTS MUTUAL FUND:
Escorts Asset Management Limited established in accordance with the Deed of Trust dated
15th April, 1996 and registered with the Securities and Exchange Board of India on 3rd July,
1996 vide registration no. MF/028/96/4.Escorts Mutual Fund is the premier Asset Management Company offering Investment products across a broad cross-section of Financial Assests

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covering both Debt and Equity. It was registered with Securities and Exchange Board of India
(SEBI) in 1996.The Company is the one of the earliest entrants into the Indian Mutual Funds
Industry. It is associated with Escorts Group - with Escorts Limited as its Flagship Company,
which is amongst Indias leading corporations, operating in diverse fields of Agri-Machinery, Construction and Railway Ancillaries and Financial Services. The genesis of Escorts
goes back to 1944 and over the decades, Escorts has surged ahead and evolved into one of
the Indias leading conglomerates. The group holds a great repute and trust amongst people.
Escorts Mutual Fund has been established as a trust in accordance with the provisions of the
Indian Trusts Act, 1882 and the Deed of Trust dated 15th April, 1996 has been registered
under the Indian Registration Act, 1908.Backed by one of the most trusted and valued brands
in India, Escorts Mutual Fund has earned the trust of lakhs of investors with its consistent
performance and excellent service.
ALLIANCE CAPITAL MUTUAL FUND:
Alliance capital mutual fund was setup on December 30 1994 with alliance capital Management Corp. of Delware (USA) as sponsor. The Trustee is ACAM Trust Company Pvt. Ltd.
and AMC the Alliance Capital Asset Management India (Pvt.)Ltd. with the corporate office in
Mumbai.
BENCHMARK MUTUAL FUND:
Benchmark Mutual fund was setup on June 12 2001 with Niche Financial Services Pvt. Ltd.
as the sponsor and Benchmark Trustee Company Pv. Ltd. as the Trustee Company. Incorporated on October 16 2000 and headquartered in Mumbai, Benchmark Asset Management
Company Pvt. Ltd. is the AMC. With effect from 14thJuly, 2011, both Benchmark Asset
Management Company Private Limited (BAMC) and Benchmark Trustee Company Private
Limited (BTC) are a part of the Goldman Sachs group. Further with effect from 22nd August
2011, Goldman Sachs Trustee Company (India) Private Limited (GSTC) has taken over the
trusteeship of the Schemes of Benchmark Mutual Fund (BMF) from BTC, and Goldman
Sachs Asset Management (India) Private Limited (GS AMC) has taken over the rights to
manage the Schemes from BAMC and has become the investment manager of the Schemes.
Consequently, the Schemes have become an integral part of the Goldman Sachs Mutual Fund
on 22nd August 2011.
CANBANK MUTUAL FUND:
Canbank Mutual Fund was setup on December 19 1987 with Canara Bank acting as the sponsor. Canbank Investment Management Services Ltd. incorporated on March 2 1993 is the
AMC. The Corporate Office of the AMC is in Mumbai.
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CHOLA MUTUAL FUND:

Cholamandalam Investment and Finance Company Limited was incorporated in 1978 as the
financial services arm of the Murugappa Group. Chola commenced business as an equipment
financing company and has today emerged as a comprehensive financial services provider
offering vehicle finance, home loans, home equity loans, SME loans, investment advisory
services, stock broking and a variety of other financial services to customers. Chola mutual
fund was setup on January 3 1997.
LIC MUTUAL FUND:
LIC Mutual Fund was established on 20th April 1989 by LIC of India. Being an associate
company of Indias premier and most trusted brand, LIC Mutual Fund is one of the well
known players in the asset management sphere. With a systematic investment discipline coupled with a high standard of financial ethics and corporate governance, LIC Mutual Fund is
emerging as a preferred Investment Manager amongst the investor fraternity.

LIC Mutual Fund endeavours to create value for its investors by adopting

innovative and robust investment strategies, catering to all segments of investors. LIC Mutual
Fund believes in providing delight to its customers and partners by way of superior investment experience and unparalleled service thereby truly bring them.
GIC MUTUAL FUND:
The entire general insurance business in India was nationalised by General Insurance Business (Nationalisation) Act, 1972 (GIBNA). The Government of India (GOI), through Nationalisation took over the shares of 55 Indian insurance companies and the undertakings of
52 insurers carrying on general insurance business. General Insurance Corporation of India
(GIC) was formed in pursuance of Section 9(1) of GIBNA. It was incorporated on 22 November 1972 under the Companies Act, 1956 as a private company limited by shares. GIC
was formed for the purpose of superintending, controlling and carrying on the business of
general insurance. As soon as GIC was formed, GOI transferred all the shares it held of the
general insurance companies to GIC. Simultaneously, the nationalised undertakings were
transferred to Indian insurance companies. After a process of mergers among Indian insurance companies, four companies were left as fully owned subsidiary companies of GIC
National Insurance Company Limited.
The New India Assurance Company Limited.
The Oriental Insurance Company Limited.
United India Insurance Company Limited.

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The next landmark happened on 19th April 2000, when the Insurance

Regulatory and Development Authority Act, 1999 (IRDAA) came into force. This Act also
introduced amendment to GIBNA and the Insurance Act, 1938. An amendment to GIBNA
removed the exclusive privilege of GIC and its subsidiaries carrying on general insurance in
India. In November 2000, GIC was renotified as the Indian Reinsurer and through administrative instruction, its supervisory role over the four subsidiaries was ended. With the General
Insurance Business (Nationalisation) Amendment Act 2002 (40 of 2002) coming into force
from March 21, 2003; GIC ceased to be a holding company of its subsidiaries. The ownership
of the four erstwhile subsidiary companies and also of the General Insurance Corporation of
India was vested with Government of India. GIC Re is a wholly owned company of Government of India.

CONCLUSION:
Mutual Funds clearly have a significant role to play in the development of Indian
economy. Their modus operandi of aggregating pools of saving from a large number of
retail investors and deploying these resources in a variety of financial markets, based on
different risk-return preferences simultaneously enhances efficiency, stability and
financial inclusion of different types of investors. It is also relatively easy for them to be
transparent about both their strategies and outcomes. Therefore mutual fund companies have
a great importance through out the Indian Economy.

BIBLIOGRAPHY:
https://en.wikipedia.org/wiki/Mutual_funds_in_India
https://www.amfiindia.com/new-to-mutual-funds/what-are-mutual-funds
http://www.escortsmutual.com/about-us-amc.aspx
http://www.benchmarkfunds.com/gsamtest/
http://www.cholawealthdirect.com/About-Us/
http://www.licmf.com/index.php/template/home/overview
http://gicofindia.com/index.php?option=com_content&view=arti
cle&id=8&Itemid=444&lang=en
Chapter 2 Mutual Funds: Evolution, Significance and Indian Market - Author :shodhgaga