SlideShare Explore Search You

 Upload
 Login
 Signup

header
Submit Search

 Home

 Explore

Successfully reported this slideshow.

We use your LinkedIn profile and activity data to personalize ads and to show you more relevant
ads. You can change your ad preferences anytime.
Upcoming SlideShare

Loading in …5
×

1 of 78
Share SlideShare

 Facebook

 Twitter

 LinkedIn

Embed
Size (px)
slide 1
Start on
WordPress Shortcode
Link
Business
358,080 views
Jun. 02, 2011
Like Liked
Share

A project report on comparative study of

mutual funds in india
A project report on comparative study of mutual funds in india

Read more

Projects Kart
Digital Media
Follow

 0 Comments
 972 Likes
 Statistics
 Notes

Full Name

Comment goes here.

12 hours ago   Delete Reply Block

Are you sure you want to Yes No

Your message goes here

Post

 Be the first to comment

KunalMalvani

5 days ago

Venkatesh Chowdary

1 week ago

Dhruvraj Vaghela

1 week ago

PranaliSarade

2 weeks ago

Pratik Chakranarayan

2 weeks ago

Show More

No Downloads
Views
Total views
358,080
On SlideShare
0
From Embeds
0
Number of Embeds
674
Actions
Shares
0
Downloads
2
Comments
0
Likes
972
No notes for slide

A project report on comparative study of mutual funds in india

1. 1. Projectsformba.blogspot.com UNIVERSITY OF MUMBAI PROJECT ON

COMPARATIVE STUDY OF MUTUAL FUNDS IN INDIA SUBMITTED In Partial
Fulfillment of the requirements For the Award of the Degree of Bachelor of Management
BY PROJECT GUIDE BACHELOR OF MANAGEMENT STUDIES SEMESTER V
(2009-10) V.E.S. COLLEGE OF ARTS, SCIENCE & COMMERCE, SINDHI
SOCIETY, CHEMBUR, MUMBAI – 400071. 1
2. 2. Projectsformba.blogspot.com DECLARATION I, ____________________________,
the student of Bachelor ofManagement Studies - Semester V (2009-10) hereby declare
that I havecompleted this project on _________________________________________.
The information submitted is true & original to the best of myknowledge. Student’s
Signature ( ) 2
3. 3. Projectsformba.blogspot.com CERTIFICATE This is to certify that Mr.
_______________________________ ofBachelor of Management Studies - Semester V
(2009-10) hassuccessfully completed the project on
_______________________________________________under the guidance of
________________________.Course Coordinator PrincipalProject Guide/ Internal
ExaminerExternal Examiner 3
4. 4. Projectsformba.blogspot.com ACKNOWLEDGEMENT Before we get into thick of
things, I would like to add a few words of appreciation for thepeople who have been a
part of this project right from its inception. The writing of this projecthas been one of the
significant academic challenges I have faced and without the support,patience, and
guidance of the people involved, this task would not have been completed. It is tothem I
owe my deepest gratitude. It gives me Immense pleasure in presenting this project report
on "COMPARATIVESTUDY OF MUTUAL FUNDS IN INDIA". It has been my
 privilege to have a team of projectguide who have assisted me from the commencement
of this project. The success of this projectis a result of sheer hard work, and
determination put in by me with the help of my project guide.I hereby take this
opportunity to add a special note of thanks for ………………., who undertookto act as
my mentor despite her many other academic and professional commitments. Herwisdom,
knowledge, and commitment to the highest standards inspired and motivated me.Without
her insight, support, and energy, this project wouldnt have kick-started and neitherwould
have reached fruitfulness. I also feel heartiest sense of obligation to my library staff
members & seniors, whohelped me in collection of data & resource material & also in its
processing as well as in draftingmanuscript. The project is dedicated to all those people,
who helped me while doing this project. 4
5. 5. Projectsformba.blogspot.comNEED FOR THE STUDY: The main purpose of doing
this project was to know about mutual fund and itsfunctioning. This helps to know in
details about mutual fund industry right from its inceptionstage, growth and future
prospects. It also helps in understanding different schemes of mutual funds. Because my
studydepends upon prominent funds in India and their schemes like equity, income,
balance as well asthe returns associated with those schemes. The project study was done
to ascertain the asset allocation, entry load, exit load,associated with the mutual funds.
Ultimately this would help in understanding the benefits ofmutual funds to
investors.OBJECTIVE:  To give a brief idea about the benefits available from Mutual
Fund investment.  To give an idea of the types of schemes available.  To discuss
about the market trends of Mutual Fund investment.  To study some of the mutual fund
schemes.  To study some mutual fund companies and their funds.  Observe the fund
management process of mutual funds.  Explore the recent developments in the mutual
funds in India.  To give an idea about the regulations of mutual funds.LIMITATIONS •
The lack of information sources for the analysis part. • Though I tried to collect some
primary data but they were too inadequate for the purposes of the study. • Time and
money are critical factors limiting this study. • The data provided by the prospects may
not be 100% correct as they too have their limitations. • The study is limited to selected
mutual fund schemes. 5
6. 6. Projectsformba.blogspot.com EXECUTIVE SUMMERY A mutual fund is a scheme in
which several people invest their money for a commonfinancial cause. The collected
money invests in the capital market and the money, which theyearned, is divided based
on the number of units, which they hold. The mutual fund industry started in India in a
small way with the UTI Act creating whatwas effectively a small savings division within
the RBI. Over a period of 25 years this grewfairly successfully and gave investors a good
return, and therefore in 1989, as the next logicalstep, public sector banks and financial
institutions were allowed to float mutual funds and theirsuccess emboldened the
government to allow the private sector to foray into this area. The advantages of mutual
fund are professional management, diversification, economiesof scale, simplicity, and
liquidity. The disadvantages of mutual fund are high costs, over-diversification, possible
taxconsequences, and the inability of management to guarantee a superior return. The
biggest problems with mutual funds are their costs and fees it include Purchase
fee,Redemption fee, Exchange fee, Management fee, Account fee & Transaction Costs.
There aresome loads which add to the cost of mutual fund. Load is a type of commission
depending on thetype of funds. Mutual funds are easy to buy and sell. You can either buy
 them directly from the fundcompany or through a third party. Before investing in any
funds one should consider some factorlike objective, risk, Fund Manager’s and scheme
track record, Cost factor etc. There are many, many types of mutual funds. You can
classify funds based Structure(open-ended & close-ended), Nature (equity, debt,
balanced), Investment objective (growth,income, money market) etc. A code of conduct
and registration structure for mutual fund intermediaries, which weresubsequently
mandated by SEBI. In addition, this year AMFI was involved in a number
ofdevelopments and enhancements to the regulatory framework. 6
7. 7. Projectsformba.blogspot.com The most important trend in the mutual fund industry is
the aggressive expansion of theforeign owned mutual fund companies and the decline of
the companies floated by nationalizedbanks and smaller private sector players. Reliance
Mutual Fund, UTI Mutual Fund, ICICI Prudential Mutual Fund, HDFC MutualFund and
Birla Sun Life Mutual Fund are the top five mutual fund company in India. Reliance
mutual funding is considered to be most reliable mutual funds in India. Peoplewant to
invest in this institution because they know that this institution will never dissatisfy
themat any cost. You should always keep this into your mind that if particular mutual
funding schemeis on larger scale then next time, you might not get the same results so
being a careful investoryou should take your major step diligently otherwise you will be
unable to obtain the highreturns. 7
8. 8. Projectsformba.blogspot.com INDEX PAGE SRNO. TOPICS NO 1.
INTRODUCTION OF MUTUAL FUND 01 2. WORKING OF MUTUAL FUND 25 3.
MUTUAL FUND IN INDIA 33 4. RELIANCE MUTUAL FUND vs. UTI MUTUAL
FUND 37 5. MUTUAL FUND vs. OTHER INVESTMENT 60 6. FUTURE PROSPECT
OF MUTUAL FUNDS IN INDIA 67 MF JARGON 68 CONCLUSION 69
BIBLOGRAPHY 70 8
9. 9. Projectsformba.blogspot.com Chapter: 1 INTRODUCTION OF MUTUAL
FUNDThere are a lot of investment avenues available today in the financial market for an
investor withan investable surplus. He can invest in Bank Deposits, Corporate
Debentures, and Bonds wherethere is low risk but low return. He may invest in Stock of
companies where the risk is high andthe returns are also proportionately high. The recent
trends in the Stock Market have shown thatan average retail investor always lost with
periodic bearish tends. People began opting forportfolio managers with expertise in stock
markets who would invest on their behalf. Thus wehad wealth management services
provided by many institutions. However they proved too costlyfor a small investor. These
investors have found a good shelter with the mutual funds.CONCEPT OF MUTUAL
FUND: A mutual fund is a common pool of money into which investors place their
contributionsthat are to be invested in accordance with a stated objective. The ownership
of the fund is thusjoint or “mutual”; the fund belongs to all investors. A single investor’s
ownership of the fund isin the same proportion as the amount of the contribution made by
him or her bears to the totalamount of the fund. 9
10. 10. Projectsformba.blogspot.com Mutual Funds are trusts, which accept savings from
investors and invest the same indiversified financial instruments in terms of objectives set
out in the trusts deed with the view toreduce the risk and maximize the income and
capital appreciation for distribution for themembers. A Mutual Fund is a corporation and
the fund manager’s interest is to professionallymanage the funds provided by the
investors and provide a return on them after deductingreasonable management fees. The
 objective sought to be achieved by Mutual Fund is to provide an opportunity forlower
income groups to acquire without much difficulty financial assets. They cater mainly
tothe needs of the individual investor whose means are small and to manage investors
portfolio in amanner that provides a regular income, growth, safety, liquidity and
diversificationopportunities.DEFINITION: “Mutual funds are collective savings and
investment vehicles where savings of small(or sometimes big) investors are pooled
together to invest for their mutual benefit and returnsdistributed proportionately”. “A
mutual fund is an investment that pools your money with the money of an
unlimitednumber of other investors. In return, you and the other investors each own
shares of the fund.The funds assets are invested according to an investment objective into
the funds portfolio ofinvestments. Aggressive growth funds seek long-term capital
growth by investing primarily instocks of fast-growing smaller companies or market
segments. Aggressive growth funds are alsocalled capital appreciation funds”. 10
11. 11. Projectsformba.blogspot.comWhy Select Mutual Fund? The risk return trade-off
indicates that if investor is willing to take higher risk thencorrespondingly he can expect
higher returns and vise versa if he pertains to lower riskinstruments, which would be
satisfied by lower returns. For example, if an investors opt forbank FD, which provide
moderate return with minimal risk. But as he moves ahead to invest incapital protected
funds and the profit-bonds that give out more return which is slightly higher ascompared
to the bank deposits but the risk involved also increases in the same proportion. Thus
investors choose mutual funds as their primary means of investing, as Mutual
fundsprovide professional management, diversification, convenience and liquidity. That
doesn’t meanmutual fund investments risk free. This is because the money that is pooled
in are not invested only in debts funds which areless riskier but are also invested in the
stock markets which involves a higher risk but can expecthigher returns. Hedge fund
involves a very high risk since it is mostly traded in the derivativesmarket which is
considered very volatile. RETURN RISK MATRIX HIGHIER RISK HIGHER RISK
MODERATE RETURNS HIGHIER RETURNS Venture Capital Equity Bank FD
Mutual Funds Postal Savings LOWER RISK LOWER RISK LOWER RETURNS
HIGIER RETURNS 11
12. 12. Projectsformba.blogspot.comHISTORY OF MUTUAL FUNDS IN INDIA: The
mutual fund industry in India started in 1963 with the formation of Unit Trust ofIndia, at
the initiative of the Government of India and Reserve Bank. The history of mutual
fundsin India can be broadly divided into four distinct phasesFIRST PHASE – 1964-87:
Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set
upby the Reserve Bank of India and functioned under the Regulatory and administrative
control ofthe Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the
IndustrialDevelopment Bank of India (IDBI) took over the regulatory and administrative
control in placeof RBI. The first scheme launched by UTI was Unit Scheme 1964. At the
end of 1988 UTI hadRs.6,700 crores of assets under management.SECOND PHASE –
1987-1993 (ENTRY OF PUBLIC SECTOR FUNDS): 1987 marked the entry of non-
UTI, public sector mutual funds set up by public sectorbanks and Life Insurance
Corporation of India (LIC) and General Insurance Corporation of India(GIC). SBI
Mutual Fund was the first non- UTI Mutual Fund established in June 1987 followedby
Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian
BankMutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct
 92). LICestablished its mutual fund in June 1989 while GIC had set up its mutual fund in
December1990. At the end of 1993, the mutual fund industry had assets under
management of Rs.47,004crores.THIRD PHASE – 1993-2003 (ENTRY OF PRIVATE
SECTOR FUNDS): With the entry of private sector funds in 1993, a new era started in
the Indian mutual fundindustry, giving the Indian investors a wider choice of fund
families. Also, 1993 was the year inwhich the first Mutual Fund Regulations came into
being, under which all mutual funds, exceptUTI were to be registered and governed. The
erstwhile Kothari Pioneer (now merged withFranklin Templeton) was the first private
sector mutual fund registered in July 1993. 12
13. 13. Projectsformba.blogspot.com The 1993 SEBI (Mutual Fund) Regulations were
substituted by a more comprehensiveand revised Mutual Fund Regulations in 1996. The
industry now functions under the SEBI(Mutual Fund) Regulations 1996. The number of
mutual fund houses went on increasing, with many foreign mutual fundssetting up funds
in India and also the industry has witnessed several mergers and acquisitions. Asat the
end of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805
crores.The Unit Trust of India with Rs.44,541 crores of assets under management was
way ahead ofother mutual funds.FOURTH PHASE – SINCE FEBRUARY 2003: In
February 2003, following the repeal of the Unit Trust of India Act 1963 UTI
wasbifurcated into two separate entities. One is the Specified Undertaking of the Unit
Trust of Indiawith assets under management of Rs.29,835 crores as at the end of January
2003, representingbroadly, the assets of US 64 scheme, assured return and certain other
schemes. The SpecifiedUndertaking of Unit Trust of India, functioning under an
administrator and under the rulesframed by Government of India and does not come
under the purview of the Mutual FundRegulations. The second is the UTI Mutual Fund
Ltd, sponsored by SBI, PNB, BOB and LIC. It isregistered with SEBI and functions
under the Mutual Fund Regulations. With the bifurcation ofthe erstwhile UTI which had
in March 2000 more than Rs.76,000 crores of assets undermanagement and with the
setting up of a UTI Mutual Fund, conforming to the SEBI MutualFund Regulations, and
with recent mergers taking place among different private sector funds, themutual fund
industry has entered its current phase of consolidation and growth. As at the end
ofSeptember, 2004, there were 29 funds, which manage assets of Rs.153108 crores under
421schemes. 13
14. 14. Projectsformba.blogspot.comThe graph indicates the growth of assets under
management over the years. GROWTH IN ASSETS UNDER MANAGEMENT (Source:
www.amfiindia.com) 14
15. 15. Projectsformba.blogspot.comADVANTAGES OF MUTUAL FUNDS: If mutual
funds are emerging as the favorite investment vehicle, it is because of the
manyadvantages they have over other forms and the avenues of investing, particularly for
the investorwho has limited resources available in terms of capital and the ability to carry
out detailedresearch and market monitoring. The following are the major advantages
offered by mutualfunds to all investors:1. Portfolio Diversification: Each investor in the
fund is a part owner of all the fund’s assets, thus enabling him tohold a diversified
investment portfolio even with a small amount of investment that wouldotherwise require
big capital.2. Professional Management: Even if an investor has a big amount of capital
available to him, he benefits from theprofessional management skills brought in by the
fund in the management of the investor’sportfolio. The investment management skills,
 along with the needed research into availableinvestment options, ensure a much better
return than what an investor can manage on his own.Few investors have the skill and
resources of their own to succeed in today’s fast moving, globaland sophisticated
markets.3. Reduction/Diversification Of Risk: When an investor invests directly, all the
risk of potential loss is his own, whether heplaces a deposit with a company or a bank, or
he buys a share or debenture on his own or in anyother from. While investing in the pool
of funds with investors, the potential losses are alsoshared with other investors. The risk
reduction is one of the most important benefits of acollective investment vehicle like the
mutual fund. 15
16. 16. Projectsformba.blogspot.com4. Reduction Of Transaction Costs: What is true of risk
as also true of the transaction costs. The investor bears all the costs ofinvesting such as
brokerage or custody of securities. When going through a fund, he has thebenefit of
economies of scale; the funds pay lesser costs because of larger volumes, a benefitpassed
on to its investors.5. Liquidity: Often, investors hold shares or bonds they cannot directly,
easily and quickly sell. Whenthey invest in the units of a fund, they can generally cash
their investments any time, by sellingtheir units to the fund if open-ended, or selling them
in the market if the fund is close-end.Liquidity of investment is clearly a big benefit.6.
Convenience And Flexibility: Mutual fund management companies offer many investor
services that a direct marketinvestor cannot get. Investors can easily transfer their holding
from one scheme to the other; getupdated market information and so on.7. Tax Benefits:
Any income distributed after March 31, 2002 will be subject to tax in the assessment ofall
Unit holders. However, as a measure of concession to Unit holders of open-ended equity-
oriented funds, income distributions for the year ending March 31, 2003, will be taxed at
aconcessional rate of 10.5%. In case of Individuals and Hindu Undivided Families a
deduction upto Rs. 9,000 from theTotal Income will be admissible in respect of income
from investments specified in Section 80L,including income from Units of the Mutual
Fund. Units of the schemes are not subject toWealth-Tax and Gift-Tax.8. Choice of
Schemes:Mutual Funds offer a family of schemes to suit your varying needs over a
lifetime. 16
17. 17. Projectsformba.blogspot.com9. Well Regulated:All Mutual Funds are registered with
SEBI and they function within the provisions of strictregulations designed to protect the
interests of investors. The operations of Mutual Funds areregularly monitored by
SEBI.10. Transparency: You get regular information on the value of your investment in
addition to disclosure on the specific investments made by your scheme, the proportion
invested in each class of assets and the fund managers investment strategy and
outlook.DISADVANTAGES OF INVESTING THROUGH MUTUALFUNDS:1. No
Control Over Costs: An investor in a mutual fund has no control of the overall costs of
investing. The investorpays investment management fees as long as he remains with the
fund, albeit in return for theprofessional management and research. Fees are payable even
if the value of his investments isdeclining. A mutual fund investor also pays fund
distribution costs, which he would not incur indirect investing. However, this
shortcoming only means that there is a cost to obtain the mutualfund services.2. No
Tailor-Made Portfolio: Investors who invest on their own can build their own portfolios
of shares and bonds andother securities. Investing through fund means he delegates this
decision to the fund managers.The very-high-net-worth individuals or large corporate
investors may find this to be a constraintin achieving their objectives. However, most
 mutual fund managers help investors overcome thisconstraint by offering families of
funds- a large number of different schemes- within their ownmanagement company. An
investor can choose from different investment plans and constructs aportfolio to his
choice. 17
18. 18. Projectsformba.blogspot.com3. Managing A Portfolio Of Funds: Availability of a
large number of funds can actually mean too much choice for theinvestor. He may again
need advice on how to select a fund to achieve his objectives, quitesimilar to the situation
when he has individual shares or bonds to select.4. The Wisdom Of Professional
Management: Thats right, this is not an advantage. The average mutual fund manager is
no better atpicking stocks than the average nonprofessional, but charges fees.5. No
Control: Unlike picking your own individual stocks, a mutual fund puts you in the
passenger seatof somebody elses car6. Dilution: Mutual funds generally have such small
holdings of so many different stocks thatinsanely great performance by a funds top
holdings still doesnt make much of a difference in amutual funds total performance.7.
Buried Costs: Many mutual funds specialize in burying their costs and in hiring salesmen
who do notmake those costs clear to their clients. 18
19. 19. Projectsformba.blogspot.comTYPES OF MUTUAL FUNDS SCHEMES IN INDIA
Wide variety of Mutual Fund Schemes exists to cater to the needs such as
financialposition, risk tolerance and return expectations etc. thus mutual funds has
Variety of flavors,Being a collection of many stocks, an investors can go for picking a
mutual fund might be easy.There are over hundreds of mutual funds scheme to choose
from. It is easier to think of mutualfunds in categories, mentioned below. 19
20. 20. Projectsformba.blogspot.comA).BY STRUCTURE1. Open - Ended Schemes: An
open-end fund is one that is available for subscription all through the year. These donot
have a fixed maturity. Investors can conveniently buy and sell units at Net Asset
Value("NAV") related prices. The key feature of open-end schemes is liquidity.2. Close -
Ended Schemes: A closed-end fund has a stipulated maturity period which generally
ranging from 3 to 15years. The fund is open for subscription only during a specified
period. Investors can invest inthe scheme at the time of the initial public issue and
thereafter they can buy or sell the units ofthe scheme on the stock exchanges where they
are listed. In order to provide an exit route to theinvestors, some close-ended funds give
an option of selling back the units to the Mutual Fundthrough periodic repurchase at
NAV related prices. SEBI Regulations stipulate that at least oneof the two exit routes is
provided to the investor.3. Interval Schemes: Interval Schemes are that scheme, which
combines the features of open-ended and close-ended schemes. The units may be traded
on the stock exchange or may be open for sale orredemption during pre-determined
intervals at NAV related prices. 20
21. 21. Projectsformba.blogspot.comB).BY NATURE1. Equity Fund: These funds invest a
maximum part of their corpus into equities holdings. The structureof the fund may vary
different for different schemes and the fund manager’s outlook on differentstocks. The
Equity Funds are sub-classified depending upon their investment objective, asfollows: •
Diversified Equity Funds • Mid-Cap Funds • Sector Specific Funds • Tax Savings Funds
(ELSS) Equity investments are meant for a longer time horizon, thus Equity funds rank
high onthe risk-return matrix.2. Debt Funds: The objective of these Funds is to invest in
debt papers. Government authorities, privatecompanies, banks and financial institutions
are some of the major issuers of debt papers. Byinvesting in debt instruments, these funds
 ensure low risk and provide stable income to theinvestors. Debt funds are further
classified as: • Gilt Funds: Invest their corpus in securities issued by Government,
popularly known as Government of India debt papers. These Funds carry zero Default
risk but are associated with Interest Rate risk. These schemes are safer as they invest in
papers backed by Government. • Income Funds: Invest a major portion into various debt
instruments such as bonds, corporate debentures and Government securities. • MIPs:
Invests maximum of their total corpus in debt instruments while they take minimum
exposure in equities. It gets benefit of both equity and debt market. These scheme ranks
slightly high on the risk-return matrix when compared with other debt schemes. 21
22. 22. Projectsformba.blogspot.com • Short Term Plans (STPs): Meant for investment
horizon for three to six months. These funds primarily invest in short term papers like
Certificate of Deposits (CDs) and Commercial Papers (CPs). Some portion of the corpus
is also invested in corporate debentures. • Liquid Funds: Also known as Money Market
Schemes, These funds provides easy liquidity and preservation of capital. These schemes
invest in short-term instruments like Treasury Bills, inter-bank call money market, CPs
and CDs. These funds are meant for short-term cash management of corporate houses and
are meant for an investment horizon of 1day to 3 months. These schemes rank low on
risk-return matrix and are considered to be the safest amongst all categories of mutual
funds.3. Balanced Funds: As the name suggest they, are a mix of both equity and debt
funds. They invest in bothequities and fixed income securities, which are in line with pre-
defined investment objective ofthe scheme. These schemes aim to provide investors with
the best of both the worlds. Equity partprovides growth and the debt part provides
stability in returns.Further the mutual funds can be broadly classified on the basis of
investment parameter viz,Each category of funds is backed by an investment philosophy,
which is pre-defined in theobjectives of the fund. The investor can align his own
investment needs with the funds objectiveand invest accordingly. 22
23. 23. Projectsformba.blogspot.comC).BY INVESTMENT OBJECTIVE:Growth Schemes:
Growth Schemes are also known as equity schemes. The aim of these schemes is
toprovide capital appreciation over medium to long term. These schemes normally invest
a majorpart of their fund in equities and are willing to bear short-term decline in value for
possiblefuture appreciation.Income Schemes: Income Schemes are also known as debt
schemes. The aim of these schemes is to provideregular and steady income to investors.
These schemes generally invest in fixed incomesecurities such as bonds and corporate
debentures. Capital appreciation in such schemes may belimited.Balanced Schemes:
Balanced Schemes aim to provide both growth and income by periodically distributing
apart of the income and capital gains they earn. These schemes invest in both shares and
fixedincome securities, in the proportion indicated in their offer documents (normally
50:50).Money Market Schemes: Money Market Schemes aim to provide easy liquidity,
preservation of capital andmoderate income. These schemes generally invest in safer,
short-term instruments, such astreasury bills, certificates of deposit, commercial paper
and inter-bank call money.Load Funds: A Load Fund is one that charges a commission
for entry or exit. That is, each time youbuy or sell units in the fund, a commission will be
payable. Typically entry and exit loads rangefrom 1% to 2%. It could be worth paying the
load, if the fund has a good performance history.No-Load Funds: A No-Load Fund is one
that does not charge a commission for entry or exit. That is, nocommission is payable on
 purchase or sale of units in the fund. The advantage of a no load fundis that the entire
corpus is put to work. 23
24. 24. Projectsformba.blogspot.comOTHER SCHEMESTax Saving Schemes: Tax-saving
schemes offer tax rebates to the investors under tax laws prescribed from timeto time.
Under Sec.88 of the Income Tax Act, contributions made to any Equity Linked
SavingsScheme (ELSS) are eligible for rebate.Index Schemes: Index schemes attempt to
replicate the performance of a particular index such as the BSESensex or the NSE 50.
The portfolio of these schemes will consist of only those stocks thatconstitute the index.
The percentage of each stock to the total holding will be identical to thestocks index
weightage. And hence, the returns from such schemes would be more or lessequivalent to
those of the Index.Sector Specific Schemes:These are the funds/schemes which invest in
the securities of only those sectors or industries asspecified in the offer documents. e.g.
Pharmaceuticals, Software, Fast Moving Consumer Goods(FMCG), Petroleum stocks,
etc. The returns in these funds are dependent on the performance ofthe respective
sectors/industries. While these funds may give higher returns, they are more
riskycompared to diversified funds. Investors need to keep a watch on the performance of
thosesectors/industries and must exit at an appropriate time. 24
25. 25. Projectsformba.blogspot.comNET ASSET VALUE (NAV): Since each owner is a
part owner of a mutual fund, it is necessary to establish the value ofhis part. In other
words, each share or unit that an investor holds needs to be assigned a value.Since the
units held by investor evidence the ownership of the fund’s assets, the value of the
totalassets of the fund when divided by the total number of units issued by the mutual
fund gives usthe value of one unit. This is generally called the Net Asset Value (NAV) of
one unit or oneshare. The value of an investor’s part ownership is thus determined by the
NAV of the number ofunits held.Calculation of NAV: Let us see an example. If the value
of a fund’s assets stands at Rs. 100 and it has 10investors who have bought 10 units each,
the total numbers of units issued are 100, and the valueof one unit is Rs. 10.00
(1000/100). If a single investor in fact owns 3 units, the value of hisownership of the fund
will be Rs. 30.00(1000/100*3). Note that the value of the fund’sinvestments will keep
fluctuating with the market-price movements, causing the Net Asset Valuealso to
fluctuate. For example, if the value of our fund’s asset increased from Rs. 1000 to
1200,the value of our investors holding of 3 units will now be (1200/100*3) Rs. 36. The
investmentvalue can go up or down, depending on the markets value of the fund’s assets.
25
26. 26. Projectsformba.blogspot.comMUTUAL FUND FEES AND EXPENSES Mutual fund
fees and expenses are charges that may be incurred by investors who holdmutual funds.
Running a mutual fund involves costs, including shareholder transaction costs,investment
advisory fees, and marketing and distribution expenses. Funds pass along these coststo
investors in a number of ways.1. TRANSACTION FEES i) Purchase Fee: It is a type of
fee that some funds charge their shareholders when they buy shares. Unlike a front-end
sales load, a purchase fee is paid to the fund (not to a broker) and is typically imposed to
defray some of the funds costs associated with the purchase. ii) Redemption Fee: It is
another type of fee that some funds charge their shareholders when they sell or redeem
shares. Unlike a deferred sales load, a redemption fee is paid to the fund (not to a broker)
and is typically used to defray fund costs associated with a shareholders redemption. iii)
Exchange Fee: Exchange fee that some funds impose on shareholders if they exchange
 (transfer) to another fund within the same fund group or "family of funds."2. PERIODIC
FEES i) Management Fee: Management fees are fees that are paid out of fund assets to
the funds investment adviser for investment portfolio management, any other
management fees payable to the funds investment adviser or its affiliates, and
administrative fees payable to the investment adviser that are not included in the "Other
Expenses" category. They are also called maintenance fees. 26
27. 27. Projectsformba.blogspot.com ii) Account Fee: Account fees are fees that some funds
separately impose on investors in connection with the maintenance of their accounts. For
example, some funds impose an account maintenance fee on accounts whose value is less
than a certain dollar amount.3. OTHER OPERATING EXPENSES Transaction Costs:
These costs are incurred in the trading of the funds assets. Funds with a high turnover
ratio, or investing in illiquid or exotic markets usually face higher transaction costs.
Unlike the Total Expense Ratio these costs are usually not reported.LOADSDefinition of
a load Load funds exhibit a "Sales Load" with a percentage charge levied on purchase or
sale ofshares. A load is a type of Commission (remuneration). Depending on the type of
load a mutualfund exhibits, charges may be incurred at time of purchase, time of sale, or
a mix of both. Thedifferent types of loads are outlined below.Front-end load: Also known
as Sales Charge, this is a fee paid when shares are purchased. Also known asa "front-end
load," this fee typically goes to the brokers that sell the funds shares. Front-endloads
reduce the amount of your investment. For example, lets say you have Rs.10,000 and
wantto invest it in a mutual fund with a 5% front-end load. The Rs.500 sales load you
must paycomes off the top, and the remaining Rs.9500 will be invested in the fund.
According to NASDrules, a front-end load cannot be higher than 8.5% of your
investment. 27
28. 28. Projectsformba.blogspot.comBack-end load: Also known as Deferred Sales Charge,
this is a fee paid when shares are sold. Alsoknown as a "back-end load," this fee typically
goes to the brokers that sell the funds shares. Theamount of this type of load will depend
on how long the investor holds his or her shares andtypically decreases to zero if the
investor holds his or her shares long enough.Level load / Low load: Its similar to a back-
end load in that no sales charges are paid when buying the fund.Instead a back-end load
may be charged if the shares purchased are sold within a given timeframe. The distinction
between level loads and low loads as opposed to back-end loads, is thatthis time frame
where charges are levied is shorter.No-load Fund: As the name implies, this means that
the fund does not charge any type of sales load. But,as outlined above, not every type of
shareholder fee is a "sales load." A no-load fund may chargefees that are not sales loads,
such as purchase fees, redemption fees, exchange fees, and accountfees. 28
29. 29. Projectsformba.blogspot.comSELECTION PARAMETERS FOR MUTUAL
FUNDYour objective: The first point to note before investing in a fund is to find out
whether your objectivematches with the scheme. It is necessary, as any conflict would
directly affect your prospectivereturns. Similarly, you should pick schemes that meet
your specific needs. Examples: pensionplans, children’s plans, sector-specific schemes,
etc.Your risk capacity and capability: This dictates the choice of schemes. Those with no
risk tolerance should go for debtschemes, as they are relatively safer. Aggressive
investors can go for equity investments.Investors that are even more aggressive can try
schemes that invest in specific industry orsectors.Fund Manager’s and scheme track
record: Since you are giving your hard earned money to someone to manage it, it is
 imperativethat he manages it well. It is also essential that the fund house you choose has
excellent trackrecord. It also should be professional and maintain high transparency in
operations. Look at theperformance of the scheme against relevant market benchmarks
and its competitors. Look at theperformance of a longer period, as it will give you how
the scheme fared in different marketconditions.Cost factor: Though the AMC fee is
regulated, you should look at the expense ratio of the fund beforeinvesting. This is
because the money is deducted from your investments. A higher entry load orexit load
also will eat into your returns. A higher expense ratio can be justified only bysuperlative
returns. It is very crucial in a debt fund, as it will devour a few percentages from
yourmodest returns. 29
30. 30. Projectsformba.blogspot.com Also, Morningstar rates mutual funds. Each year end,
many financial publications list theyears best performing mutual funds. Naturally, very
eager investors will rush out to purchaseshares of last years top performers. Thats a big
mistake. Remember, changing market conditionsmake it rare that last years top performer
repeats that ranking for the current year. Mutual fundinvestors would be well advised to
consider the fund prospectus, the fund manager, and thecurrent market conditions. Never
rely on last years top performers.Types of Returns on Mutual Fund: There are three ways,
where the total returns provided by mutual funds can be enjoyed byinvestors: • Income is
earned from dividends on stocks and interest on bonds. A fund pays out nearly all income
it receives over the year to fund owners in the form of a distribution. • If the fund sells
securities that have increased in price, the fund has a capital gain. Most funds also pass
on these gains to investors in a distribution.If fund holdings increase in price but are not
sold by the fund manager, the funds shares increasein price. You can then sell your
mutual fund shares for a profit. Funds will also usually give youa choice either to receive
a check for distributions or to reinvest the earnings and get moreshares. 30
31. 31. Projectsformba.blogspot.comRISK FACTORS OF MUTUAL FUNDS:1. The Risk-
Return Trade-Off: The most important relationship to understand is the risk-return trade-
off. Higher the riskgreater the returns / loss and lower the risk lesser the returns/loss.
Hence it is upto you, the investor to decide how much risk you are willing to take.
Inorder to do this you must first be aware of the different types of risks involved with
yourinvestment decision.2. Market Risk: Sometimes prices and yields of all securities
rise and fall. Broad outside influencesaffecting the market in general lead to this. This is
true, may it be big corporations or smallermid-sized companies. This is known as Market
Risk. A Systematic Investment Plan (“SIP”) thatworks on the concept of Rupee Cost
Averaging (“RCA”) might help mitigate this risk.3. Credit Risk: The debt servicing
ability (may it be interest payments or repayment of principal) of acompany through its
cashflows determines the Credit Risk faced by you. This credit risk ismeasured by
independent rating agencies like CRISIL who rate companies and their paper. A‘AAA’
rating is considered the safest whereas a ‘D’ rating is considered poor credit quality.
Awell-diversified portfolio might help mitigate this risk.4. Inflation Risk: Things you
hear people talk about:"Rs. 100 today is worth more than Rs. 100 tomorrow.""Remember
the time when a bus ride costed 50 paise?""Mehangai Ka Jamana Hai."The root cause,
Inflation. Inflation is the loss of purchasing power over time. A lot of timespeople make
conservative investment decisions to protect their capital but end up with a sum ofmoney
that can buy less than what the principal could at the time of the investment. This
happens 31
32. 32. Projectsformba.blogspot.comwhen inflation grows faster than the return on your
investment. A well-diversified portfolio withsome investment in equities might help
mitigate this risk.5. Interest Rate Risk: In a free market economy interest rates are
difficult if not impossible to predict. Changesin interest rates affect the prices of bonds as
well as equities. If interest rates rise the prices ofbonds fall and vice versa. Equity might
be negatively affected as well in a rising interest rateenvironment. A well-diversified
portfolio might help mitigate this risk.6. Political / Government Policy Risk: Changes in
government policy and political decision can change the investmentenvironment. They
can create a favorable environment for investment or vice versa.7. Liquidity Risk:
Liquidity risk arises when it becomes difficult to sell the securities that one haspurchased.
Liquidity Risk can be partly mitigated by diversification, staggering of maturities aswell
as internal risk controls that lean towards purchase of liquid securities. 32
33. 33. Projectsformba.blogspot.com Chapter: 2 WORKING OF MUTUAL FUNDS The
mutual fund collects money directly or through brokers from investors. The money
isinvested in various instruments depending on the objective of the scheme. The income
generatedby selling securities or capital appreciation of these securities is passed on to
the investors inproportion to their investment in the scheme. The investments are divided
into units and thevalue of the units will be reflected in Net Asset Value or NAV of the
unit. NAV is the marketvalue of the assets of the scheme minus its liabilities. The per unit
NAV is the net asset value ofthe scheme divided by the number of units outstanding on
the valuation date. Mutual fundcompanies provide daily net asset value of their schemes
to their investors. NAV is important, asit will determine the price at which you buy or
redeem the units of a scheme. Depending on theload structure of the scheme, you have to
pay entry or exit load. 33
34. 34. Projectsformba.blogspot.comSTRUCTURE OF A MUTUAL FUND: India has a
legal framework within which Mutual Fund have to be constituted. In Indiaopen and
close-end funds operate under the same regulatory structure i.e. as unit Trusts. AMutual
Fund in India is allowed to issue open-end and close-end schemes under a common
legalstructure. The structure that is required to be followed by any Mutual Fund in India
is laid downunder SEBI (Mutual Fund) Regulations, 1996.The Fund Sponsor: Sponsor is
defined under SEBI regulations as any person who, acting alone or incombination of
another corporate body establishes a Mutual Fund. The sponsor of the fund isakin to the
promoter of a company as he gets the fund registered with SEBI. The sponsor forms
atrust and appoints a Board of Trustees. The sponsor also appoints the Asset
ManagementCompany as fund managers. The sponsor either directly or acting through
the trustees will alsoappoint a custodian to hold funds assets. All these are made in
accordance with the regulationand guidelines of SEBI. 34
35. 35. Projectsformba.blogspot.com As per the SEBI regulations, for the person to qualify as
a sponsor, he must contribute atleast 40% of the net worth of the Asset Management
Company and possesses a sound financialtrack record over 5 years prior to
registration.Mutual Funds as Trusts: A Mutual Fund in India is constituted in the form of
Public trust Act, 1882. The Fundsponsor acts as a settlor of the Trust, contributing to its
initial capital and appoints a trustee tohold the assets of the trust for the benefit of the
unit-holders, who are the beneficiaries of thetrust. The fund then invites investors to
contribute their money in common pool, by scribing to“units” issued by various schemes
established by the Trusts as evidence of their beneficialinterest in the fund. It should be
 understood that the fund should be just a “pass through” vehicle. Under theIndian Trusts
Act, the trust of the fund has no independent legal capacity itself, rather it is theTrustee or
the Trustees who have the legal capacity and therefore all acts in relation to the trustsare
taken on its behalf by the Trustees. In legal parlance the investors or the unit-holders are
thebeneficial owners of the investment held by the Trusts, even as these investments are
held in thename of the Trustees on a day-to-day basis. Being public trusts, Mutual Fund
can invite anynumber of investors as beneficial owners in their investment
schemes.Trustees: A Trust is created through a document called the Trust Deed that is
executed by the fundsponsor in favour of the trustees. The Trust- the Mutual Fund – may
be managed by a board oftrustees- a body of individuals, or a trust company- a corporate
body. Most of the funds in Indiaare managed by Boards of Trustees. While the boards of
trustees are governed by the IndianTrusts Act, where the trusts are a corporate body, it
would also require to comply with theCompanies Act, 1956. The Board or the Trust
company as an independent body, acts as aprotector of the of the unit-holders interests.
The Trustees do not directly manage the portfolio ofsecurities. For this specialist
function, the appoint an Asset Management Company. They ensurethat the Fund is
managed by ht AMC as per the defined objectives and in accordance with thetrusts deeds
and SEBI regulations. 35
36. 36. Projectsformba.blogspot.comThe Asset Management Companies: The role of an
Asset Management Company (AMC) is to act as the investment managerof the Trust
under the board supervision and the guidance of the Trustees. The AMC is requiredto be
approved and registered with SEBI as an AMC. The AMC of a Mutual Fund must have
anet worth of at least Rs. 10 Crores at all times. Directors of the AMC, both independent
and non-independent, should have adequate professional expertise in financial services
and should beindividuals of high morale standing, a condition also applicable to other key
personnel of theAMC. The AMC cannot act as a Trustee of any other Mutual Fund.
Besides its role as a fundmanager, it may undertake specified activities such as advisory
services and financial consulting,provided these activities are run independent of one
another and the AMC’s resources (such aspersonnel, systems etc.) are properly
segregated by the activity. The AMC must always act in theinterest of the unit-holders
and reports to the trustees with respect to its activities.Custodian and Depositories:
Mutual Fund is in the business of buying and selling of securities in large
volumes.Handling these securities in terms of physical delivery and eventual safekeeping
is a specializedactivity. The custodian is appointed by the Board of Trustees for
safekeeping of securities orparticipating in any clearance system through approved
depository companies on behalf of theMutual Fund and it must fulfill its responsibilities
in accordance with its agreement with theMutual Fund. The custodian should be an entity
independent of the sponsors and is required tobe registered with SEBI. With the
introduction of the concept of dematerialization of shares thedematerialized shares are
kept with the Depository participant while the custodian holds thephysical securities.
Thus, deliveries of a fund’s securities are given or received by a custodian ora depository
participant, at the instructions of the AMC, although under the overall direction
andresponsibilities of the Trustees.Bankers: A Fund’s activities involve dealing in money
on a continuous basis primarily with respectto buying and selling units, paying for
investment made, receiving the proceeds from sale of theinvestments and discharging its
obligations towards operating expenses. Thus the Fund’s banker 36
37. 37. Projectsformba.blogspot.complays an important role to determine quality of service
that the fund gives in timely delivery ofremittances etc.Transfer Agents: Transfer agents
are responsible for issuing and redeeming units of the Mutual Fund andprovide other
related services such as preparation of transfer documents and updating investorrecords.
A fund may choose to carry out its activity in-house and charge the scheme for theservice
at a competitive market rate. Where an outside Transfer agent is used, the fund
investorwill find the agent to be an important interface to deal with, since all of the
investor services thata fund provides are going to be dependent on the transfer
agent.REGULATORY STRUCTURE OF MUTUAL FUNDS IN INDIA: The structure
of mutual funds in India is guided by the SEBI. Regulations, 1996.Theseregulations make
it mandatory for mutual fund to have three structures of sponsor trustee andasset
Management Company. The sponsor of the mutual fund and appoints the trustees.
Thetrustees are responsible to the investors in mutual fund and appoint the AMC for
managing theinvestment portfolio. The AMC is the business face of the mutual fund, as it
manages all theaffairs of the mutual fund. The AMC and the mutual fund have to be
registered with SEBI. 37
38. 38. Projectsformba.blogspot.comSEBI REGULATIONS:• As far as mutual funds are
concerned, SEBI formulates policies and regulates the mutual funds to protect the interest
of the investors.• SEBI notified regulations for the mutual funds in 1993. Thereafter,
mutual funds sponsored by private sector entities were allowed to enter the capital
market.• The regulations were fully revised in 1996 and have been amended thereafter
from time to time.• SEBI has also issued guidelines to the mutual funds from time to time
to protect the interests of investors.• All mutual funds whether promoted by public sector
or private sector entities including those promoted by foreign entities are governed by the
same set of Regulations. The risks associated with the schemes launched by the mutual
funds sponsored by these entities are of similar type. There is no distinction in regulatory
requirements for these mutual funds and all are subject to monitoring and inspections by
SEBI.• SEBI Regulations require that at least two thirds of the directors of trustee
company or board of trustees must be independent i.e. they should not be associated with
the sponsors.• Also, 50% of the directors of AMC must be independent. All mutual funds
are required to be registered with SEBI before they launch any scheme.• Further SEBI
Regualtions, inter-alia, stipulate that MFs cannot gurarnatee returns in any scheme and
that each scheme is subject to 20 : 25 condition [I.e minimum 20 investors per scheme
and one investor can hold more than 25% stake in the corpus in that one scheme].• Also
SEBI has permitted MFs to launch schemes overseas subject various restrictions and also
to launch schemes linked to Real Estate, Options and Futures, Commodities, etc. 38
39. 39. Projectsformba.blogspot.comASSOCIATION OF MUTUAL FUNDS IN INDIA
(AMFI): With the increase in mutual fund players in India, a need for mutual fund
association inIndia was generated to function as a non-profit organisation. Association of
Mutual Funds inIndia (AMFI) was incorporated on 22nd August, 1995. AMFI is an apex
body of all Asset Management Companies (AMC) which has beenregistered with SEBI.
Till date all the AMCs are that have launched mutual fund schemes are itsmembers. It
functions under the supervision and guidelines of its Board of Directors. Association of
Mutual Funds India has brought down the Indian Mutual Fund Industry toa professional
and healthy market with ethical lines enhancing and maintaining standards. Itfollows the
principle of both protecting and promoting the interests of mutual funds as well astheir
 unit holders.The Objectives of Association of Mutual Funds in India: The Association of
Mutual Funds of India works with 30 registered AMCs of thecountry. It has certain
defined objectives which juxtaposes the guidelines of its Board ofDirectors. The
objectives are as follows: • This mutual fund association of India maintains high
professional and ethical standards in all areas of operation of the industry. • It also
recommends and promotes the top class business practices and code of conduct which is
followed by members and related people engaged in the activities of mutual fund and
asset management. The agencies who are by any means connected or involved in the field
of capital markets and financial services also involved in this code of conduct of the
association. • AMFI interacts with SEBI and works according to SEBIs guidelines in the
mutual fund industry. • Association of Mutual Fund of India do represent the
Government of India, the Reserve Bank of India and other related bodies on matters
relating to the Mutual Fund Industry. • It develops a team of well qualified and trained
Agent distributors. It implements a programme of training and certification for all
intermediaries and other engaged in the mutual fund industry. 39
40. 40. Projectsformba.blogspot.com • AMFI undertakes all India awareness programme for
investors in order to promote proper understanding of the concept and working of mutual
funds. • At last but not the least association of mutual fund of India also disseminate
informations on Mutual Fund Industry and undertakes studies and research either directly
or in association with other bodies.AMFI Publications:AMFI publish mainly two types of
bulletin. One is on the monthly basis and the other isquarterly. These publications are of
great support for the investors to get intimation of theknowhow of their parked money. 40
41. 41. Projectsformba.blogspot.com Chapter: 3 MUTUAL FUNDS IN INDIA In 1963, the
day the concept of Mutual Fund took birth in India. Unit Trust of Indiainvited investors
or rather to those who believed in savings, to park their money in UTI MutualFund. For
30 years it goaled without a single second player. Though the 1988 year saw somenew
mutual fund companies, but UTI remained in a monopoly position. The performance of
mutual funds in India in the initial phase was not even closer tosatisfactory level. People
rarely understood, and of course investing was out of question. But yes,some 24 million
shareholders were accustomed with guaranteed high returns by the beginning
ofliberalization of the industry in 1992. This good record of UTI became marketing tool
for newentrants. The expectations of investors touched the sky in profitability factor.
However, peoplewere miles away from the preparedness of risks factor after the
liberalization. The net asset value (NAV) of mutual funds in India declined when stock
prices startedfalling in the year 1992. Those days, the market regulations did not allow
portfolio shifts intoalternative investments. There was rather no choice apart from
holding the cash or to furthercontinue investing in shares. One more thing to be noted,
since only closed-end funds werefloated in the market, the investors disinvested by
selling at a loss in the secondary market. The performance of mutual funds in India
suffered qualitatively. The 1992 stock marketscandal, the losses by disinvestments and of
course the lack of transparent rules in thewhereabouts rocked confidence among the
investors. Partly owing to a relatively weak stockmarket performance, mutual funds have
not yet recovered, with funds trading at an averagediscount of 1020 percent of their net
asset value. The securities and Exchange Board of India (SEBI) came out with
comprehensiveregulation in 1993 which defined the structure of Mutual Fund and Asset
ManagementCompanies for the first time. The supervisory authority adopted a set of
 measures to create a transparent andcompetitive environment in mutual funds. Some of
them were like relaxing investment 41
42. 42. Projectsformba.blogspot.comrestrictions into the market, introduction of open-ended
funds, and paving the gateway formutual funds to launch pension schemes. The measure
was taken to make mutual funds the key instrument for long-term saving.The more the
variety offered, the quantitative will be investors. Several private sectors Mutual Funds
were launched in 1993 and 1994. The share of theprivate players has risen rapidly since
then. Currently there are 34 Mutual Fund organizations inIndia managing 1,02,000
crores. At last to mention, as long as mutual fund companies are performing with lower
risks andhigher profitability within a short span of time, more and more people will be
inclined to investuntil and unless they are fully educated with the dos and don’ts of
mutual funds. Mutual fund industry has seen a lot of changes in past few years with
multinationalcompanies coming into the country, bringing in their professional expertise
in managing fundsworldwide. In the past few months there has been a consolidation
phase going on in the mutualfund industry in India. Now investors have a wide range of
Schemes to choose from dependingon their individual profiles. 42
43. 43. Projectsformba.blogspot.comMUTUAL FUND COMPANIES IN INDIA: The
concept of mutual funds in India dates back to the year 1963. The era between 1963and
1987 marked the existance of only one mutual fund company in India with Rs. 67bn
assetsunder management (AUM), by the end of its monopoly era, the Unit Trust of India
(UTI). By theend of the 80s decade, few other mutual fund companies in India took their
position in mutualfund market. The new entries of mutual fund companies in India were
SBI Mutual Fund, CanbankMutual Fund, Punjab National Bank Mutual Fund, Indian
Bank Mutual Fund, Bank of IndiaMutual Fund. The succeeding decade showed a new
horizon in Indian mutual fund industry. By the endof 1993, the total AUM of the industry
was Rs. 470.04 bn. The private sector funds startedpenetrating the fund families. In the
same year the first Mutual Fund Regulations came intoexistance with re-registering all
mutual funds except UTI. The regulations were further given arevised shape in 1996.
Kothari Pioneer was the first private sector mutual fund company in India which has
nowmerged with Franklin Templeton. Just after ten years with private sector players
penetration, thetotal assets rose up to Rs. 1218.05 bn. Today there are 33 mutual fund
companies in India.Major Mutual Fund Companies in India• ABN AMRO Mutual Fund •
Standard Chartered Mutual Fund• Birla Sun Life Mutual Fund • Franklin Templeton
India Mutual Fund• Bank of Baroda Mutual Fund • Morgan Stanley Mutual Fund India•
HDFC Mutual Fund • Escorts Mutual Fund• HSBC Mutual Fund • Alliance Capital
Mutual Fund• ING Vysya Mutual Fund • Benchmark Mutual Fund• Prudential ICICI
Mutual Fund • Canbank Mutual Fund• State Bank of India Mutual Fund • Chola Mutual
Fund• Tata Mutual Fund • LIC Mutual Fund• Unit Trust of India Mutual Fund • GIC
Mutual Fund• Reliance Mutual Fund 43
44. 44. Projectsformba.blogspot.com For the first time in the history of Indian mutual fund
industry, Unit Trust of India MutualFund has slipped from the first slot. Earlier, in May
2006, the Prudential ICICI Mutual Fund wasranked at the number one slot in terms of
total assets. In the very next month, the UTIMF had regained its top position as the
largest fund housein India. Now, according to the current pegging order and the data
released by Association ofMutual Funds in India (AMFI), the Reliance Mutual Fund,
with a January-end AUM of Rs39,020 crore has become the largest mutual fund in India
 On the other hand, UTIMF, with an AUM of Rs 37,535 crore, has gone to
secomdposition. The Prudential ICICI MF has slipped to the third position with an AUM
of Rs 34,746crore.It happened for the first time in last one year that a private sector
mutual fund house has reachedto the top slot in terms of asset under management
(AUM). In the last one year to January, AUMof the Indian fund industry has risen by
64% to Rs 3.39 lakh crore. According to the data released by Association of Mutual
Funds in India (AMFI), thecombined average AUM of the 35 fund houses in the country
increased to Rs 5,512.99 billion inApril compared to Rs 4,932.86 billion in March
Reliance MF maintained its top position as the largest fund house in the country with
Rs74.25 billion jump in AUM to Rs 883.87 billion at April-end.The second-largest fund
house HDFC MF gained Rs 59.24 billion in its AUM at Rs 638.80billion. ICICI
Prudential and state-run UTI MF added Rs 46.16 billion and Rs 57.35 billion
rerespectively to their assets last month. ICICI Prudential`s AUM stood at Rs 560.49
billion at theend of April, while UTI MF had assets worth Rs 544.89 billion. The other
fund houses which saw an increase in their average AUM in April include-Canara
Robeco MF, IDFC MF, DSP BlackRock, Deutsche MF, Kotak Mahindra MF and
LICMF. 44
45. 45. Projectsformba.blogspot.com Chapter: 4 RELIANCE MUTUAL FUND Vs UTI
MUTUAL FUNDRELIANCE MUTUAL FUND Reliance Mutual Fund (RMF) was
established as trust under Indian Trusts Act, 1882. Thesponsor of RMF is Reliance
Capital Limited and Reliance Capital Trustee Co. Limited is theTrustee. It was registered
on June 30, 1995 as Reliance Capital Mutual Fund which was changedon March 11,
2004. Reliance Mutual Fund was formed for launching of various schemes underwhich
units are issued to the Public with a view to contribute to the capital market and to
provideinvestors the opportunities to make investments in diversified securities. RMF is
one of India’s leading Mutual Funds, with Average Assets Under Management(AAUM)
of Rs. 88,388 crs (AAUM for 30th Apr 09) and an investor base of over 71.53
Lacs.Reliance Mutual Fund, a part of the Reliance - Anil Dhirubhai Ambani Group, is
one of thefastest growing mutual funds in the country. RMF offers investors a well-
rounded portfolio ofproducts to meet varying investor requirements and has presence in
118 cities across the country. Reliance Mutual Fund constantly endeavors to launch
innovative products and customerservice initiatives to increase value to investors.
"Reliance Mutual Fund schemes are managed byReliance Capital Asset Management
Limited., a subsidiary of Reliance Capital Limited, whichholds 93.37% of the paid-up
capital of RCAM, the balance paid up capital being held byminority
shareholders."Sponsor : Reliance Capital Limited.Trustee : Reliance Capital Trustee Co.
Limited. 45
46. 46. Projectsformba.blogspot.comInvestment Manager : Reliance Capital Asset
Management Limited. The Sponsor, the Trustee and the Investment Manager are
incorporated under theCompanies Act 1956.Vision Statement “To be a globally respected
wealth creator with an emphasis on customer care and aculture of good corporate
governance.”Mission Statement To create and nurture a world-class, high performance
environment aimed at delightingour customers.The Main Objectives Of The Trust: • To
carry on the activity of a Mutual Fund as may be permitted at law and formulate and
devise various collective Schemes of savings and investments for people in India and
abroad and also ensure liquidity of investments for the Unit holders; • To deploy Funds
 thus raised so as to help the Unit holders earn reasonable returns on their savings and • To
take such steps as may be necessary from time to time to realise the effects without any
limitation. 46
47. 47. Projectsformba.blogspot.comSCHEMESA).EQUITY/GROWTH SCHEMES: The
aim of growth funds is to provide capital appreciation over the medium to long-term.
Such schemes normally invest a major part of their corpus in equities. Such funds
havecomparatively high risks. Growth schemes are good for investors having a long-term
outlookseeking appreciation over a period of time.1. Reliance Infrastructure Fund(Open-
Ended Equity): The primary investment objective of the scheme is to generate long term
capital appreciation by investing predominantly in equity and equity related instruments
of companies engaged in infrastructure (Airports, Construction, Telecommunication,
Transportation) and infrastructure related sectors and which are incorporated or have
their area of primary activity, in India and the secondary objective is to generate
consistent returns by investing in debt and money market securities.Investment Strategy:
The investment focus would be guided by the growth potential and other economic
factors of the country. The Fund aims to maximize long-term total return by investing in
equity and equity-related securities which have their area of primary activity in India.2.
Reliance Quant Plus Fund/Reliance Index Fund (Open-Ended Equity): The investment
objective of the Scheme is to generate capital appreciation through investment in equity
and equity related instruments. The Scheme will seek to generate capital appreciation by
investing in an active portfolio of stocks selected from S & P CNX Nifty on the basis of a
mathematical model. An investment fund that approach stock selection process based on
quantitative analysis.3. Reliance Natural Resources Fund (Open-Ended Equity): The
primary investment objective of the scheme is to seek to generate capital appreciation &
provide long-term growth opportunities by investing in companies principally engaged in
the discovery, development, production, or distribution of natural resources and 47
48. 48. Projectsformba.blogspot.com the secondary objective is to generate consistent returns
by investing in debt and money market securities. Natural resources may include, for
example, energy sources, precious and other metals, forest products, food and agriculture,
and other basic commodities.4. Reliance Equity Linked Saving Fund (A 10 Year Close-
Ended Equity ): The primary objective of the scheme is to generate long-term capital
appreciation from a portfolio that is invested predominantly in equities along with income
tax benefit. The scheme may invest in equity shares in foreign companies and instruments
convertible into equity shares of domestic or foreign companies and in derivatives as may
be permissible under the guidelines issued by SEBI and RBI.5. Reliance Equity
Advantage Fund (Open-Ended Diversified Equity): The primary investment objective of
the scheme is to seek to generate capital appreciation & provide long-term growth
opportunities by investing in a portfolio predominantly of equity & equity related
instruments with investments generally in S & P CNX Nifty stocks and the secondary
objective is to generate consistent returns by investing in debt and money market
securities.6. Reliance Equity Fund (Open-Ended Diversified Equity) : The primary
investment objective of the scheme is to seek to generate capital appreciation & provide
long-term growth opportunities by investing in a portfolio constituted of equity & equity
related securities of top 100 companies by market capitalization & of companies which
are available in the derivatives segment from time to time and the secondary objective is
to generate consistent returns by investing in debt and money market securities. 48
49. 49. Projectsformba.blogspot.com7. Reliance Tax Saver (ELSS) Fund (Open-Ended
Equity): The primary objective of the scheme is to generate long-term capital
appreciation from a portfolio that is invested predominantly in equity and equity related
instruments.Tax Benefits: • Investment upto Rs 1 lakh by the eligible investor in this fund
would enable you to avail the benefits under Section 80C (2) of the Income-tax Act,
1961. • Dividends received will be absolutely TAX FREE. • The dividend distribution tax
(payable by the AMC) for equity schemes is also NIL8. Reliance Growth Fund (Open-
Ended Equity): The primary investment objective of the Scheme is to achieve long term
growth of capital by investment in equity and equity related securities through a research
based investment approach.9. Reliance Vision Fund (Open-Ended Equity) : The primary
investment objective of the Scheme is to achieve long term growth of capital by
investment in equity and equity related securities through a research based investment
approach.10. Reliance Equity Opportunities Fund (Open-Ended Diversified Equity): The
primary investment objective of the scheme is to seek to generate capital appreciation &
provide long-term growth opportunities by investing in a portfolio constituted of equity
securities & equity related securities and the secondary objective is to generate consistent
returns by investing in debt and money market securities.11. Reliance NRI Equity Fund
(Open-Ended Diversified Equity): The Primary investment objective of the scheme is to
generate optimal returns by investing in equity or equity related instruments primarily
drawn from the Companies in the BSE 200 Index. 49
50. 50. Projectsformba.blogspot.com12. Reliance Long Term Equity Fund (Open-Ended
Diversified Equity): The primary investment objective of the scheme is to seek to
generate long term capital appreciation & provide long-term growth opportunities by
investing in a portfolio constituted of equity & equity related securities and Derivatives
and the secondary objective is to generate consistent returns by investing in debt and
money market securities. It is a 36-month close ended diversified equity fund with an
automatic conversion into an open ended scheme on expiry of 36-months from the date of
allotment. It aims to maximize returns by investing 70-100% in Equities focusing in
small and mid cap companies.13.Reliance Regular Savings Fund (Open-Ended Equity):
Reliance Regular Savings Fund provides you the choice of investing in Debt, Equity or
Hybrid options with a pertinent investment objective and pattern for each option. Invest
as little as Rs.100/-every month in the Reliance Regular Savings Fund. For the first time
in India, your mutual fund offers instant cash withdrawal facility on your investment at
any VISA-enabled ATM near you. With a choice of three investment options, the fund is
truly, the smart new way to invest.B).DEBT/INCOME SCHEMES: The aim of income
funds is to provide regular and steady income to investors. Suchschemes generally invest
in fixed income securities such as bonds, corporate debentures,Government securities and
money market instruments. Such funds are less risky compared toequity schemes. These
funds are not affected because of fluctuations in equity markets.However, opportunities
of capital appreciation are also limited in such funds. The NAVs of suchfunds are
affected because of change in interest rates in the country. If the interest rates fall,NAVs
of such funds are likely to increase in the short run and vice versa. However, long
terminvestors may not bother about these fluctuations. 50
51. 51. Projectsformba.blogspot.com1. Reliance Monthly Income Plan : (An Open Ended
Fund, Monthly Income is not assured & is subject to the availability of distributable
surplus) The Primary investment objective of the Scheme is to generate regular income in
 order to make regular dividend payments to unit holders and the secondary objective is
growth of capital.2. Reliance Gilt Securities Fund - Short Term Gilt Plan & Long Term
Gilt Plan : (Open-ended Government Securities Scheme) The primary objective of the
Scheme is to generate optimal credit risk-free returns by investing in a portfolio of
securities issued and guaranteed by the central Government and State Government.3.
Reliance Income Fund : (An Open-ended Income Scheme) The primary objective of the
scheme is to generate optimal returns consistent with moderate levels of risk. This
income may be complemented by capital appreciation of the portfolio. Accordingly,
investments shall predominantly be made in Debt & Money market Instruments.4.
Reliance Medium Term Fund : (An Open End Income Scheme with no assured returns)
The primary investment objective of the Scheme is to generate regular income in order to
make regular dividend payments to unit holders and the secondary objective is growth of
capital5. Reliance Short Term Fund : (An Open End Income Scheme) The primary
investment objective of the scheme is to generate stable returns for investors with a short
investment horizon by investing in Fixed Income Securities of short term maturity.6.
Reliance Liquid Fund : (Open-ended Liquid Scheme) The primary investment objective
of the Scheme is to generate optimal returns consistent with moderate levels of risk and
high liquidity. 51
52. 52. Projectsformba.blogspot.com Accordingly, investments shall predominantly be made
in Debt and Money Market Instruments.7. Reliance Floating Rate Fund : (An Open End
Liquid Scheme) The primary objective of the scheme is to generate regular income
through investment in a portfolio comprising substantially of Floating Rate Debt
Securities (including floating rate securitised debt and Money Market Instruments and
Fixed Rate Debt Instruments swapped for floating rate returns). The scheme shall also
invest in fixed rate debt Securities (including fixed rate securitised debt, Money Market
Instruments and Floating Rate Debt Instruments swapped for fixed returns.8. Reliance
NRI Income Fund : (An Open-ended Income scheme) The primary investment objective
of the Scheme is to generate optimal returns consistent with moderate levels of risks. This
income may be complimented by capital appreciation of the portfolio. Accordingly,
investments shall predominantly be made in debt Instruments.9. Reliance Liquidity
Fund : (An Open - ended Liquid Scheme) The investment objective of the Scheme is to
generate optimal returns consistent with moderate levels of risk and high liquidity.
Accordingly, investments shall predominantly be made in Debt and Money Market
Instruments.10.Reliance Interval Fund : (A Debt Oriented Interval Scheme) The primary
investment objective of the scheme is to seek to generate regular returns and growth of
capital by investing in a diversified portfolio11.Reliance Liquid Plus Fund: (An Open-
ended Income Scheme) The investment objective of the Scheme is to generate optimal
returns consistent with moderate levels of risk and liquidity by investing in debt securities
and money market securities. 52
53. 53. Projectsformba.blogspot.com12.Reliance Fixed Horizon Fund–I: (A closed ended
Scheme) The primary investment objective of the scheme is to seek to generate regular
returns and growth of capital by investing in a diversified portfolio.13. Reliance Fixed
Horizon Fund –II: (A closed ended Scheme.) The primary investment objective of the
scheme is to seek to generate regular returns and growth of capital by investing in a
diversified portfolio.14. Reliance Fixed Horizon Fund –III: (A Close-ended Income
Scheme.) The primary investment objective of the scheme is to seek to generate regular
 returns and growth of capital by investing in a diversified portfolio.15.Reliance Fixed
Tenor Fund : (A Close-ended Scheme) The primary investment objective of the Plan is to
seek to generate regular returns and growth of capital by investing in a diversified
portfolio.16.Reliance Fixed Horizon Fund -Plan C : (A closed ended Scheme.) The
primary investment objective of the scheme is to seek to generate regular returns and
growth of capital by investing in a diversified portfolio.17. Reliance Fixed Horizon Fund
- IV: (A Close-ended Income Scheme.) The primary investment objective of the scheme
is to seek to generate regular returns and growth of capital by investing in a diversified
portfolio. 53
54. 54. Projectsformba.blogspot.com18.Reliance Fixed Horizon Fund - V: (A Close-ended
Income Scheme.) The primary investment objective of the scheme is to seek to generate
regular returns and growth of capital by investing in a diversified portfolio of: Central
and State Government securities and Other fixed income/ debt securities normally
maturing in line with the time profile of the scheme with the objective of limiting interest
rate volatility19. Reliance Fixed Horizon Fund – VI : (A Close-ended Income Scheme)
The primary investment objective of the scheme is to seek to generate regular returns and
growth of capital by investing in a diversified portfolio of: - Central and State
Government securities and Other fixed income/ debt securities normally maturing in line
with the time profile of the series with the objective of limiting interest rate volatility20.
Reliance Fixed Horizon Fund – VII : (A Close-ended Income Scheme.) The primary
investment objective of the scheme is to seek to generate regular returns and growth of
capital by investing in a diversified portfolio of: - Central and State Government
securities and Other fixed income/ debt securities normally maturing in line with the time
profile of the series with the objective of limiting interest rate volatility.C).SECTOR
SPECIFIC SCHEMES: These are the funds/schemes which invest in the securities of
specified sectors orindustries e.g. Pharmaceuticals, Software, FMCG, Petroleum stocks,
etc. The returns in thesefunds are dependent on the performance of the respective
sectors/industries. While these fundsmay give higher returns, they are more risky
compared to diversified funds. 54
55. 55. Projectsformba.blogspot.com1. Reliance Banking Fund : Reliance Mutual Fund has
an Open-Ended Banking Sector Scheme which has the primary investment objective to
generate continuous returns by actively investing in equity / equity related or fixed
income securities of banks.2. Reliance Diversified Power Sector Fund : Reliance
Diversified Power Sector Scheme is an Open-ended Power Sector Scheme. The primary
investment objective of the Scheme is to seek to generate consistent returns by actively
investing in equity / equity related or fixed income securities of Power and other
associated companies.3. Reliance Pharma Fund : Reliance Pharma Fund is an Open-
ended Pharma Sector Scheme. The primary investment objective of the Scheme is to
generate consistent returns by investing in equity / equity related or fixed income
securities of Pharma and other associated companies.4. Reliance Media & Entertainment
Fund : Reliance Media & Entertainment Fund is an Open-ended Media & Entertainment
sector scheme. The the primary investment objective of the Scheme is to generate
consistent returns by investing in equity / equity related or fixed income securities of
media & entertainment and other associated companies.D).RELIANCE GOLD
EXCHANGE TRADED FUND:(An open-ended Gold Exchange Traded Fund) The
investment objective is to seek to providereturns that closely correspond to returns
 provided by price of gold through investment inphysical Gold (and Gold related
securities as permitted by Regulators from time to time).However, the performance of the
scheme may differ from that of the domestic prices of Gold dueto expenses and or other
related factors. 55
56. 56. Projectsformba.blogspot.comUNIT TRUST OF INDIA MUTUAL FUND Unit Trust
of India was created by the UTI Act passed by the Parliament in 1963. Formore than two
decades it remained the sole vehicle for investment in the capital market by theIndian
citizens. In mid- 1980s public sector banks were allowed to open mutual funds. The
realvibrancy and competition in the MF industry came with the setting up of the
Regulator SEBI andits laying down the MF Regulations in 1993.UTI maintained its pre-
eminent place till 2001,when a massive decline in the market indices and negative
investor sentiments after KetanParekh scam created doubts about the capacity of UTI to
meet its obligations to the investors.This was further compounded by two factors;
namely, its flagship and largest scheme US 64 wassold and re-purchased not at intrinsic
NAV but at artificial price and its Assured Return Schemeshad promised returns as high
as 18% over a period going up to two decades. In order to distance Government from
running a mutual fund the ownership wastransferred to four institutions; namely SBI,
LIC, BOB and PNB, each owning 25%. UTI lost itsmarket dominance rapidly and by end
of 2005,when the new share-holders actually paid theconsideration money to
Government its market share had come down to close to 10%. A new board was
constituted and a new management inducted. Systematic study of itsproblems role and
functions was carried out with the help of a reputed international consultant.Once again
UTI has emerged as a serious player in the industry. Some of the funds have wonfamous
awards, including the Best Infra Fund globally from Lipper. UTI has been able
tobenchmark its employee compensation to the best in the market. Besides running
domestic MF Schemes UTI AMC is also a registered portfolio managerunder the SEBI
(Portfolio Managers) Regulations. 56
57. 57. Projectsformba.blogspot.com This company runs two successful funds with large
international investors being activeparticipants. UTI has also launched a Private Equity
Infrastructure Fund along with HSH NordBank of Germany and Shinsei Bank of
JapanVision:To be the most Preferred Mutual Fund.Mission:• The most trusted brand,
admired by all stakeholders.• The largest and most efficient money manager with global
presence• The best in class customer service provider• The most preferred employer• The
most innovative and best wealth creator• A socially responsible organisation known for
best corporate governanceAssets Under Management: UTI Asset Management Co.
LtdSponsor: • State Bank of India • Bank of Baroda • Punjab National Bank • Life
Insurance Corporation of IndiaTrustee: UTI Trustee Co. Limited.Reliability UTIMF has
consistently reset and upgraded transparency standards. All the branches,UFCs and
registrar offices are connected on a robust IT network to ensure cost-effective quickand
efficient service. All these have evolved UTIMF to position as a dynamic,
responsive,restructured, efficient and transparent entity, fully compliant with SEBI
regulations. 57
58. 58. Projectsformba.blogspot.comSCHEMESA).EQUITY FUND1. UTI Energy Fund
(Open Ended Fund): Investment will be made in stocks of those companies engaged in
the following are: a) Petro sector - oil and gas products & processing b) All types of
Power generation companies. c) Companies related to storage of energy. d) Companies
 manufacturing energy development equipment related ( like petro and power ) e)
Consultancy & Finance Companies2. UTI Transportation And Logistics Fund (Auto
Sector Fund) (Open Ended Fund): Investment Objective is “capital appreciation” through
investments in stocks of the companies engaged in the transportation and logistics sector.
At least 90% of the funds will be invested in equity and equity related instruments.
Atleast 80% of the funds will be invested in equity and equity related instruments of the
companies principally engaged in providing transportation services, companies
principally engaged in the design, manufacture, distribution, or sale of transportation
equipment and companies in the logistics sector. Upto 10% of the funds will be invested
in cash/money market instruments.3. UTI Banking Sector Fund (Open Ended Fund): An
open-ended equity fund with the objective to provide capital appreciation through
investments in the stocks of the companies/institutions engaged in the banking and
financial services activities.4. UTI Infrastructure Fund (Open Ended Fund): An open-
ended equity fund with the objective to provide Capital appreciation through investing in
the stocks of the companies engaged in the sectors like Metals, Building 58
59. 59. Projectsformba.blogspot.com materials, oil and gas, power, chemicals, engineering
etc. The fund will invest in the stocks of the companies which form part of Infrastructure
Industries5. UTI Equity Tax Savings Plan (Open Ended Fund): An open-ended equity
fund investing a minimum of 80% in equity and equity related instruments. It aims at
enabling members to avail tax rebate under Section 80C of the IT Act and provide them
with the benefits of growth.6. UTI Growth Sector Fund – Pharma (Open Ended Fund):
An open-ended fund which exclusively invests in the equities of the Pharma &
Healthcare sector companies. This fund is one of the growth sector funds aiming to invest
in companies engaged in business of manufacturing and marketing of bulk drug,
formulations and healthcare products and services.7. UTI Growth Sector Fund – Services
(Open Ended Fund): An open-ended fund which invests in the equities of the Services
Sector companies of the country. One of the growth sector funds aiming to provide
growth of capital over a period of time as well as to make income distribution by
investing the funds in stocks of companies engaged in service sector such as banking,
finance, insurance, education, training, telecom, travel, entertainment, hotels, etc.8. UTI
Growth Sector Fund – Software (Open Ended Fund): An open-ended fund which invests
exclusively in the equities of the Software Sector companies. One of the growth sectors
funds aiming to invest in equity shares of companies belonging to information technology
sector to provide returns to investors through capital growth as well as through regular
income distribution9. UTI Master Equity Plan Unit Scheme (Close Ended Fund): The
scheme primarily aims at securing for the investors capital appreciation by investing the
funds of the scheme in equity shares of companies with good growth prospects. 59
Recommended


Explore personal development books with Scribd

Scribd - Free 30 day trial

Full Project Report on SBI mutual funds.

AKSHAY TYAGI


Project on Mutual Funds

Ravindra Jeet

comparative Analysis of mutual fund

Parneet Walia


 Study on Mutual Fund

Vivek Saha

Project Report On Mutual fund

Amit Dazz


 Project on mutual funds is the better investments plan

Projects Kart

PPT

Manish Patidar

Finance projects topics

Babasab Patil


 Project report a study of sbi mutual funds up

rangeshsatna

Investor's perception about mutual funds

aditya kashyap

 English

 Español

 Português

 Français

 Deutsch

 About

 Dev & API

  Blog
 Terms
 Privacy
 Copyright

 Support

Share Clipboard

 Facebook

 Twitter

 LinkedIn

Link

Public clipboards featuring this slide

×
No public clipboards found for this slide

Select another clipboard

Looks like you’ve clipped this slide to already.

Create a clipboard

You just clipped your first slide!

Clipping is a handy way to collect important slides you want to go back to later. Now customize
the name of a clipboard to store your clips.
Name*
Description
Visibility
Others can see my Clipboard
Cancel Save
{

Save this document