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A STUDY ON MUTUAL FUNDS
Chapter one
Introduction
Generally, when an investor decides to study the investment options readily available in today’s
confusing, complex and risky environment, he thoroughly evaluates all the investment options. While
evaluating such multiple options, prima facie, he naturally considers several factors like Past performance
of the option under study, Risk adjusted returns from the invested plan, Share in the portfolio policy,
Fund house, Back Returns i.e. percentage of Interest / Dividend and Consistent rate of return on
investment, to mention a few. In the words of Warren Buffett, “Risk comes from not knowing what you
are doing”.
If, at all, an investor decides to follow all these options for his investment, quite strictly, preferably he
would come to a rational conclusion of an option of Mutual Funds. However, when an investor decides to
opt for Mutual Funds, he proceeds with the assumption that the performance of mutual funds is relatively
good, the return on mutual funds is better as compared to the returns on fixed deposits with banks or
posts. The performance of mutual funds is good because of proper portfolio and risk management and it
is linked and dependent on the stock market. As Robert Arnott has commented, “In investing, what is
comfortable is rarely profitable”.
The study was done to analyse the returns associated with the different mutual funds. Ultimately this
would help in understanding the benefits of mutual funds to investors.My study gives an overview of
mutual funds – definition, types, benefits, risks, limitations, history of mutual funds in India, latest trends,
global scenarios. I have analyzed a few prominent mutual funds schemes and have given my findings.
The main purpose of doing this project was to know about mutual funds and its functioning. This helps to
know in detail about the mutual fund industry right from its inception stage, growth and future prospects.
It also helps in understanding different schemes of mutual funds. Because my study depends upon
prominent funds in India and their schemes like equity, income, balance as well as the returns associated
with those schemes
INDIAN ACADEMY DEGREE COLLEGE AUTONOMOUS Page 1

Concept of Mutual Fund:
A Mutual Fund is a trust that pools the savings of the number of investors who share a common financial
goal. The money collected from investors is invested in capital market instruments such as shares,
debentures and other securities. Mutual funds issue units to the investors in accordance with the quantum
of money invested by the investors. Investors of mutual funds are known as unit holders. The income
earned through these investments and the capital appreciation realized is shared by its unit holders in
proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for
the common man as it offers an opportunity to invest in a diversified, professionally managed basket of
securities at a relatively lower cost. In India, there are many companies, both public and private that are
engaged in the trading of mutual funds. Wide varieties of Mutual Fund Schemes are available in the
market. Investors can invest their money in different types of mutual funds depending upon their
individual investment objectives. Like different investment avenues, mutual funds also offer advantages
and disadvantages, which are important for any investor to consider and understand before they decide to
invest in a mutual fund.
History of mutual funds
First Phase - 1964-1987
Unit Trust of India (UTI) was established in 1963 by an Act of Parliament. It was set up by the Reserve
Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of
India. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI)
took over the regulatory and administrative control in place of RBI. The first scheme launched by UTI
was Unit Scheme 1964. At the end of 1988 UTI had Rs. 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 sector banks 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 followed by Canbank Mutual Fund
(Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of
India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual fund in June 1989
while GIC had set up its mutual fund in December 1990.
At the end of 1993, the mutual fund industry had assets under management of Rs. 47,004 crores.
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 fund industry,
giving the Indian investors a wider choice of fund families. Also, 1993 was the year in which the first
Mutual Fund Regulations came into being, under which all mutual funds, except UTI were to be
registered and governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the
first private sector mutual fund registered in July 1993.
The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and 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 funds setting up funds
in India and also the industry has witnessed several mergers and acquisitions. As at 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 of other mutual funds.

Fourth Phase - since February 2003
In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two
separate entities. One is the Specified Undertaking of the Unit Trust of India with assets under
management of Rs. 29,835 crores as at the end of January 2003, representing broadly, the assets of US 64
scheme, assured return and certain other schemes. The Specified Undertaking of Unit Trust of India,
functioning under an administrator and under the rules framed by Government of India and does not
come under the purview of the Mutual Fund Regulations.
The second is the UTI Mutual Fund, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI
and functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile UTI which had in
March 2000 more than Rs. 76,000 crores of assets under management and with the setting up of a UTI
Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking place
among different private sector funds, the mutual fund industry has entered its current phase of
consolidation and growth.
The graph indicates the growth of assets over the years.(on the next page)

Note:
Erstwhile UTI was bifurcated into UTI Mutual Fund and the Specified Undertaking of the Unit Trust of
India effective from February 2003. The Assets under management of the Specified Undertaking of the
Unit Trust of India has therefore been excluded from the total assets of the industry as a whole from
February 2003 onwards

Advantages of mutual funds
Liquidity
Unless you opt for close-ended mutual funds, it is relatively easier to buy and exit a mutual fund scheme.
You can sell your units at any point (when the market is high). Do keep an eye on surprises like exit load
or pre-exit penalty. Remember, mutual fund transactions happen only once a day after the fund house
releases that day’s NAV.
Diversification
Mutual funds have their share of risks as their performance is based on the market movement. Hence, the
fund manager always invests in more than one asset class (equities, debts, money market instruments,
etc.) to spread the risks. It is called diversification. This way, when one asset class doesn’t perform, the
other can compensate with higher returns to avoid the loss for investors.
Your fund manager’s reputation in fund management should be an essential criterion for you to choose a
mutual fund for this reason. The expense ratio (which cannot be more than 1.05% of the AUM guidelines
as per SEBI) includes the fee of the manager too.
Expert Management
A mutual fund is favoured because it doesn’t require the investors to do the research and asset allocation.
A fund manager takes care of it all and makes decisions on what to do with your investment. He/she
decides whether to invest in equities or debt. He/she also decides on whether to hold them or not and for
how long.

Less cost for bulk transactions
You must have noticed how price drops with increased volume when you buy any product. For instance,
if a 100g toothpaste costs Rs.10, you might get a 500g pack for, say, Rs.40. The same logic applies to
mutual fund units as well. If you buy multiple units at a time, the processing fees and other commission
charges will be less compared to when you buy one unit.
Invest in smaller denominations
By investing in smaller denominations (SIP), you get exposure to the entire stock (or any other asset
class).This reduces the average transactional expenses – you benefit from the market lows and highs.
Regular (monthly or quarterly) investments, as opposed to lump sum investments, give you the benefit of
rupee cost averaging.
Suit your financial goals
There are several types of mutual funds available in India catering to investors from all walks of life. No
matter what your income is, you must make it a habit to set aside some amount (however small) towards
investments. It is easy to find a mutual fund that matches your income, expenditures, investment goals
and risk appetite.

Cost-efficiency
You have the option to pick zero-load mutual funds with fewer expense ratios. You can check the
expense ratio of different mutual funds and choose the one that fits in your budget and financial goals.
Expense ratio is the fee for managing your fund. It is a useful tool to assess a mutual fund’s performance.
Quick & painless process
You can start with one mutual fund and slowly diversify. These days it is easier to identify and
handpicked the fund(s) most suitable for you. Tracking mutual funds will not take any extra effort from
your side. The fund manager, with the help of his team, will decide when, where and how to invest. In
short, their job is to beat the benchmark and deliver you maximum returns consistently.
Tax-efficiency
You can invest up to Rs 1.5 lakh in tax-saving mutual funds which is covered under Section 80C of the
Income Tax Act, 1961. Though a 10% tax on Long-Term Capital Gains (LTCG) is applicable for returns
above Rs.1 lakh after one year, they have consistently delivered higher returns than other tax-saving
instruments like FD in recent year
Automated payments
It is common to forget or delay SIPs or prompt lump sum investments due to any given reason. You can
opt for paperless automation with your fund house or agent. Timely email and SMS notifications help to
counter this kind of negligence.

Safety
There is a general notion that mutual funds are not as safe as bank products. This is a myth as fund
houses are strictly under the purview of statutory government bodies like SEBI and AMFI. One can
easily verify the credentials of the fund house and the asset manager from SEBI. They also have an
impartial grievance redressal platform that works in the interest of investors.
Systematic or one-time investment
You can plan your mutual fund investment as per your budget and convenience. For instance, starting a
SIP (Systematic Investment Plan) on a monthly or quarterly basis suits investors with less money. On the
other hand, if you have a surplus amount, go for a one-time lump sum investment.
Disadvantages of mutual funds
Costs to manage the mutual fund
The salary of the market analysts and fund manager comes from the investors. Total fund management
charge is one of the first parameters to consider when choosing a mutual fund. Higher management fees
do not guarantee better fund performance.
Lock-in periods
Many mutual funds have long-term lock-in periods, ranging from five to eight years. Exiting such funds
before maturity can be an expensive affair. A specific portion of the fund is always kept in cash to pay out
an investor who wants to exit the fund. This portion cannot earn interest for investors.

Dilution
While diversification averages your risks of loss, it can also dilute your profits. Hence, you should not
invest in more than seven to nine mutual funds at a time. As you have just read above, the benefits and
potential of mutual funds can undoubtedly override the disadvantages, if you make informed choices.
However, investors may not have the time, knowledge or patience to research and analyse different mutual
funds.
Investing with ClearTax could solve this as we have already done the homework for you by handpicking
the top- rated funds from the best fund houses in the country
Types of Mutual Funds
Once a very small player in the financial market, mutual funds now play a large and decisive role in the
valuation of tradable assets such as stocks and bonds. As an investor, you own units, which basically
represent the portion of the fund that you hold, based on the amount invested by you. The increase in the
value of the investments is then passed on to the investors/ unit holders in proportion to the number of
units owned after deducting applicable expenses.
Mutual funds have both advantages and disadvantages compared to direct investing in individual
securities.
Today, they play a vital role in household finances, most notably in retirement planning. After Reliance
Retirement Fund (RRF), which hit the market in February 2015, HDFC has launched its Retirement
Savings Fund (HDFC RSF).Funds can also be categorized as index (Passively managed) or actively
managed.

Schemes Based on Maturity Period of
Open Ended Funds Close Ended Funds Interval Funds

Open Ended Scheme
This scheme allows investors to buy or sell units at any point in time. It does not have a fixed maturity date
either. You deal directly with the Mutual Fund for your investment and redemption.
Types of Mutual Funds in India
The mutual fund industry is continuously emerging. Several industrial bodies are also investing in
investor education. Yet, according to a report by Boston Analytics, less than 10% of our households do
not consider mutual funds as an investment avenue. In fact, a basic inquiry about the types of mutual
funds reveals that these are perhaps one of the most flexible, comprehensive and hassle-free modes of
investments that can accommodate various types of investment needs.
Various types of mutual fund categories are designed to allow investors to choose a scheme based on the
risk they are willing to take, the investable amount, their goals, the investment term, etc.
Close Ended Scheme
This type of scheme has a stipulated maturity period and investors can invest only during the initial
launch period known as the New Fund Offer (NFO). Once the offer closes, no new investments are
permitted. The market price at the stock exchange could vary from the scheme’s Net Asset Value (NAV),
because of the demand and supply situation, unit holder’s expectations and other market factors.
Some close ended schemes will give you an additional option of selling your units directly to the mutual
funds through periodic repurchase at NAV related prices.

SEBI Regulations ensure that at least one of the two exit routes are provided to the investor. Read about
the difference between open-ended and close-ended scheme
The key feature is liquidity. You can conveniently buy or sell your units at net asset value (“NAV”)
related prices. The majority of mutual funds, 59% approximately, are open-end funds.
Interval
It operates as a combination of open and closed ended scheme, it allows investors to trade units at
predefined intervals. They may be traded on the stock exchange or they may even be open for sale or
redemption during predetermined intervals at NAV related prices.
When it comes to selecting a scheme to invest in, one should look for customized advice. Choose the
scheme that provides the right combination of growth, stability and income, keeping your risk appetite in
mind.
Based on Principal Investments
One of the most important points in the circular is that different Mutual Funds schemes should be clearly
distinct in terms of investment strategy and asset allocation. The schemes will be broadly classified into
following categories
Equity Schemes Debt Schemes Hybrid Schemes

Solution Oriented Schemes Other Schemes
The existing type of scheme would be replaced with the new type of schemes. Let’s look at each type of
scheme

Equity Schemes
SEBI has decided a total of 11 categories under Equity Schemes but a mutual fund company can only
have 10 categories and it has to choose between Value or Contra. Still 10 categories looks a bit high but I
think its fair considering the possible variations in the strategy. To make this easier SEBI has also defined
the meaning of Large Cap, Mid Cap and Small Cap.
Large Cap: Top 100 companies in terms of market capitalization

Mid Cap: 101st- 250th companies in term of market capitalization Small Cap: 251st company onwards in
terms of market capitalization
• Large cap:Top 100 stocks by market capitalization are large cap stocks. These companies are
characterized by large size, market leadership in their respective industry sectors, greater financial
strength and wide public ownership. Large cap stocks are perceived by investors to be less risky and
therefore, command higher valuations.
• Midcap: 101st to 250th stocks by market capitalization are midcap stocks. These companies are
generally younger and smaller in the size compared to large cap companies. Percentage of free float
shares (shares held by the public) in midcap is much less than large cap stocks. Midcap stocks are
perceived to be more risky than large cap stocks and therefore, trade at lower valuations compared to
large cap stocks. However, midcap stocks have higher earnings growth potential than large cap stocks.
Midcap stocks, in future can become large cap stocks and therefore, see valuation re-rating. While
midcap stocks have the potential of giving higher returns than large cap stocks in the long term, they tend
to be more volatile than large cap stocks in the short term.
• Small Cap: 251st and smaller stocks by market capitalization are small cap stocks. Small cap stocks
are perceived to be more risky than large cap and midcap stocks, but they have higher returns potential
than midcap and large cap stocks in the long term. Small cap stocks can be extremely volatile in the short
term. Small cap companies in India are mostly owned by promoter or promoter families and the
percentage of free floating shares in small cap is much less than midcap and large cap stocks. In extreme

market conditions small cap stocks can have much less liquidity compared to midcap and small cap
stocks.
Equity funds classification according to market cap mix

• Large Cap Funds: As per SEBI’s mandate large cap funds must invest at least 80% of their assets in
large cap stocks. The balance can be invested in midcap, small cap and other assets. These funds invest
across industry sectors to diversify risks.
• Midcap Funds: As per SEBI’s mandate midcap funds must invest at least 65% of their assets in
midcap stocks. The balance can be invested in large cap, small cap and other assets. These funds invest
• Small Cap Funds: As per SEBI’s mandate, small cap funds must invest at least 65% of their assets in
small cap stocks. The balance can be invested in large cap, midcap and other assets. These funds invest
• Large and Midcap Funds: As per SEBI’s mandate these funds must invest at least 35% of their assets
in large cap funds and at least 35% of their assets in midcap funds. The balance assets can be invested in
stocks of any market cap segment and other assets. These funds invest across industry sectors to diversify
risks
• Multi-cap Funds: These funds can invest across market cap segments and industry sectors. There are
no minimum or maximum limits with regards to any market cap segment.
Equity funds classification according to investing styles

In addition to market cap categories, equity funds can also be categorized according to the investment
styles of the schemes.
• Dividend Yield Funds: These schemes invest predominantly in high dividend yield stocks. Dividend
yield of a stock is the ratio of the dividend paid by the stock to its current market price. High dividend
yield stocks are usually mature companies with stable business models and cash-flows. Hence they are
thought to be less risky.
• Value Funds: Value funds practise value investing strategy. The funds invest in companies which are
trading at a discount to its intrinsic value. This discount in value investment parlance is known as the

factor of safety. Fund managers estimate the intrinsic value of a stock after in-depth analysis of the
company.. Value stocks are usually characterised by relatively low price earnings or price to book
multiples and relatively higher dividend yields. Sometimes value investing is also known as contra
investing.
• Focused funds: As per SEBI’s mandate, focused funds can invest in a maximum of 30 stocks. Since
the number of stocks in these funds is limited to 30, they have higher concentration risks than more
diversified equity funds. If the fund manager gets his / her stock selection right, then these funds have
the potential of delivering superior alphas.
• Sectoral or Thematic Funds: According to SEBI’s mandate these funds should invest at least 80% of
their assets in a particular sector or theme. Investors should understand the difference between sector
and theme. Sectoral funds invest in one industry sector e.g. banking, technology, pharmaceuticals,
FMCG, infrastructure etc. An investment theme, on the other hand, can encompass several sectors. For
example, consumption themes can cover banking and financial services, automobiles, consumer
durables, consumer non-durables, media and entertainment etc. Similarly, the healthcare theme can
cover several sectors in addition to pharmaceuticals, e.g. hospitals, diagnostic centres, wellness products,
health insurance etc. Thematic funds are more diversified than sector funds. However, both thematic and
sectoral funds have higher sector risks compared to diversified equity funds. Financial advisors suggest
that diversified funds should form the core of your equity investment portfolio and you can add thematic
or sectoral funds with an aim to augment your returns.
Investors should note that dividend yield funds, value funds, contra funds and focused funds usually
follow a multi-cap strategy i.e. they invest across industry sectors and market cap segments. Each of
these fund categories have their unique risk / return characteristics. You should understand how the fund
manager selects stocks before investing in these funds. These funds can be good additions to your
mutual fund portfolio.
Debt Schemes
SEBI has decided total 16 categories under Debt Schemes. 16 categories are very high for debt funds
considering their similarity in risk and returns from a retail investor perspective. Some categories like
Overnight Fund and Liquid Fund are similar. Same is the case with money market fund and ultra-short
term debt fund categories.


Hybrid Schemes
SEBI has decided total 7 categories under Hybrid Schemes but a mutual fund company can only have 6
categories and they have to choose between Balanced Hybrid Fund or Aggressive Hybrid Fund. Also,
Finally SEBI has made Arbitrage Fund under Hybrid Fund category.(continued on the next page)


@Mutual Funds will be permitted to offer either an Aggressive Hybrid fund or Balanced fund

Solution Oriented Schemes
Role of SEBI in mutual funds
Role of SEBI in Mutual Fund Regulations
As far as mutual funds are concerned, SEBI is the policymaker and also regulates the industry. It lays
guidelines for mutual funds to safeguard the investors’ interest.
Mutual funds are very distinct in terms of their investment strategy and asset allocation activities. This
requires bringing about uniformity in the functioning of the mutual funds that may be similar in schemes.
This will assist the investors in making investment decisions more clearly.
The mutual funds have been categorised as follows to facilitate this standardisation and bringing about
uniformity in similar schemes:
Equity Schemes
Debt Schemes

Hybrid Schemes
Solution Oriented Schemes
Other Schemes
The categorisation and rationalisation of mutual funds into these five broad categories ensures that the
mutual fund houses are only able to have one scheme in each sub-category, with some exceptions.
The categorisation helps in simplifying the selection of funds and works in the best interest of the
investors by allowing them to evaluate their risk options before making decisions about investing in any
scheme.
Following this consolidation of schemes, the investors can take a more informed decision without much
hassle or confusion. To fulfil this purpose, SEBI has come up with some guidelines to help the retail
investors in their mutual funds’ investment decisions.
SEBI keeps in place the regulatory framework and guidelines that govern and regulate securities markets
in the country. The guidelines for investors are listed below.
a. Mutual funds present the most diversified form of investment options and therefore, may carry a
certain amount of risk with it. Investors must be very clear in their assessment of their financial position
and the risk- bearing capacity in the event of the poor performance of such schemes. Investors must,
therefore, consider the risk appetite of an investment scheme.
b. Before venturing into mutual fund investment, it is imperative for you as an investor to obtain
detailed information about the mutual fund scheme option. Having the right information when required to
make the necessary decision is the key to making suitable investments. This may help in choosing the
right schemes, knowing the guidelines to follow and also be informed of the investors’ rights.
c. Diversify your portfolios

Diversification of portfolios allows investors to spread out their investments over various schemes,
thereby increasing chances of maximizing profits or mitigating risk of potentially huge losses.
Diversification is crucial to gaining a long-term and sustainable financial advantage.

d. Avoid the clutter of portfolios

Choosing the right portfolio of funds requires managing and monitoring these schemes individually with
care. The investor must not clutter the portfolio and decide on the right number of schemes to hold so as
to avoid overlap and be able to manage each one of them equally well. Not sure of the right schemes for
your portfolio? ClearTax can help simplify this for you. .
e. Assign a time dimension to the investment schemes

The investors should assign a time frame to each scheme to encourage the financial growth of the plan. It
may help in containing the volatility and fluctuations in the market if the plans are maintained stably over
a period
The Association of Mutual Funds in India (AMFI)
The Association of Mutual Funds India and the Securities and Exchange Board of India (SEBI) monitor
and regulate the mutual funds industry. Read further to know more about AMFI.
Earlier, in India, investing in a mutual fund was considered risky due to ambiguity and lack of
information among people regarding investment. The government of India and Reserve Bank of India
initiated the formation of Unit Trust of India (UTI) to encourage small investors to invest in various
money market investments. The journey of mutual fund industry began with the growth of UTI. Later the
entry of public sector, private sector, international players steadily gave momentum to the industry that
empowered its growth.
AN OVERVIEW OF AMFI - PRESENT SCENARIO
According to the Consolidated Account Statement, the mutual fund industry reported nearly 36 lakh new
investors, during the financial year 2018-19. The investment in a mutual fund is now a trending thing, not
just among experienced investors, but youngsters too, thanks to the various mutual fund commercials.
When it comes to investing, there are several cases wherein investor's money is misused, or the Asset
Management Company (AMC) does not follow the transparency norm. For any such investor dispute or
queries, the Association of Mutual Funds India (AMFI) is the set up for the protection of investors'
interest.
This non-profit association came into effect in 1995. The sole purpose of AMFI is to work for the benefit
of investors by offering them transparency in mutual fund practices. AMFI restores the faith of the
investors in case they face any monetary issue in the Indian Mutual Fund Industry.
So, for instance, if you're an investor facing a monetary issue or want to file a complaint regarding a
mutual fund, the Association of Mutual Funds in India should be your first stop. The association works
under the guidance of SEBI.
Currently, AMFI comprises 44 members out of which 42 are SEBI-registered asset management
companies. For every fund expert, agent, trustees and advisor, it is necessary to register with AMFI.
OBJECTIVES OF ASSOCIATION OF MUTUAL FUNDS IN INDIA
To ensure the ethical standard of mutual fund operations in India
Oversee the operations of AMCs and mutual fund agents and ensure that they follow the code of conduct,
as well as encourage effective business practices
Seeking guidance from SEBI for any issues concerning mutual funds industry
Keeping mutual fund industry informed with updates and undertake research activities with other
bodies insuring distributors operate basis the code of conduct and taking actions in case of any violations
Protection of interest of investors

ROLE OF ASSOCIATION OF MUTUAL FUNDS (AMFI) IN INDIA
The association's presence is instrumental in ensuring ethical practices and transparency in the mutual
fund industry. Making investments accessible to new investors by ensuring transparency. Every fund
house, company or fund expert should seek permission from AMFI if they are involved in mutual fund
operations and management
AMFI REGISTRATION
Intermediaries play a significant role in the sale of mutual funds. To ensure that individual agents,
brokers & other intermediaries are carrying out trading with ethics and transparency, the AMFI ARN
registration is a mandate in India.
The minimum age for obtaining ARN is 18 years
After getting ARN licence, the intermediaries should get in touch with AMC for empanelment and
choose a mutual fund scheme
The number indicates that you have the right to engage in mutual fund trading.
The Senior Citizens should clear the Continuing Professional Education (CPE) test to get ARN.
AMFI issues the number only upon clearance of National Institute of Securities Market (NISM)
certificate that is valid for three years
If any fund manager, broker, agent or company wants to deal with mutual fund management, they should
get

Mutual funds in India
The first introduction of a mutual fund in India occurred in 1963, when the Government of India
launched Unit Trust of India (UTI).[1] 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 by Punjab National Bank.
Mutual funds are an under-tapped market in India

Despite being available in the market, less than 10% of Indian households have invested in mutual funds.
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.
The primary reason for not investing appears to be correlated with city size. Among respondents with a
high savings rate, close to 40% of those who live in metros and Tier I cities considered such investments
to be very risky, whereas 33% of those in Tier II cities said they did not know how or where to invest in
such assets.[citation needed]
In 2019, Asset under management (AUM) of the mutual fund industry rose by 13% to 24 trillion in 2018
by November
Online
Customers can buy mutual funds online via the corresponding asset management company's website or
via brokers. There are a number of new platforms that have come which offer direct mutual funds in their
platform. Subscribers can buy mutual funds from these platforms. Direct mutual funds provide better
returns, generally between .5% to 1.5% more than their regular counterparts. This is due to the fact that
broker charges are excluded from the returns. A 1% deduction from a return of 12% from mutual funds,
leads to a 8.33% lesser return to the investor, which is a huge amount.

Offline
Most of the asset management companies have an offline distribution network. These distributors mainly
sell regular mutual funds which carry some commission on it. FundsIndia, NJ, Prudent, Qfund are some
of the popular distributors in India.
Servicing
Larger Indian Mutual Fund Industry has benefited from outsourcing the activity of servicing their
investors to two of the leading Registrar and Transfer Agents (RTAs) in India namely CAMS and
KFinTech. While CAMS commands close to 65% of the Assets servicing, rest is with KFinTech.
Franklin Templeton Mutual Fund services its investors through its own in-house RTA set up.
Both the RTAs have a vibrant network of their local offices which enable the Mutual Fund Investors to
transact locally. These touchpoints (or) Customer Service Centers (CSCs), provide a wide range of
servicing including, financial transaction acceptance & processing, non-financial changes, KYC fulfillment
formalities, nomination registration, the transmission of units apart from providing a statement of accounts,
etc.
MAJOR MUTUAL FUND COMPANIES IN INDIA(TOP 10)

As per the table above, we see that a large amount of money is managed by each and every Asset
Management Company (AMC). The total Assets under Management (SUM) can vary greatly.
Readers should note that the difference between the AMC with the highest AUM and the AMC with the
lowest AUM is huge. As per the table above, the AUM for ICICI Prudential Mutual Fund is almost 30
times the AUM for IDBI Mutual Fund.Here are the top 10 mutual fund investment companies in India.
ICICI Prudential Mutual Fund
With the AUM size of approximately ₹ 3 lakh crore, ICICI Prudential Asset Management Company Ltd.
is the largest asset management company (AMC) in the country. It is a joint venture between ICICI Bank
in India and Prudential Plc, in the UK. It was started in 1993.

Ms. Chanda Kochhar is the Chairperson of this AMC.

Apart from mutual funds, the AMC also caters to Portfolio Management Services (PMS) and Real Estate
for investors.
HDFC Mutual Fund

HDFC Mutual Fund is at the 2nd number by the size of AUM. With fund size of nearly ₹ 3 lakh crore, it
is one of the largest mutual fund companies or AMC in the country.
HDFC Asset Management Company (AMC) was incorporated in 1999. It was approved to act as AMC
for HDFC Mutual Fund in 2000. Milind Barve is the Managing Director of HDFC Mutual Fund.
Aditya Birla Sun Life Mutual Fund

Formerly known as Birla Sun Life Asset Management Company, this fund house is the 3rd largest in
terms of the AUM size.
Presently it is known as Aditya Birla Sun Life (ABSL) Asset Management Company Ltd. It is a joint
venture between the Aditya Birla Group in India and Sun Life Financial Inc of Canada. It was set up as a
joint venture in 1994.
Reliance Mutual Fund

With Assets under Management of approximately ₹ 2.5 lakh crore, Reliance Mutual Fund is one of
India’s leading mutual fund companies.
A part of Reliance Anil Dhirubhai Ambani (ADA) Group, Reliance Mutual Fund is one of the fastest
growing AMCs in India.
Reliance Capital Limited (RCL) is the sponsor and Reliance Capital Trustee Co. Limited is the trustee of
Reliance Mutual Fund (RMF). It was registered on June 30, 1995. Reliance Mutual Fund was originally
Reliance Capital Mutual Fund and changed its name in 2004.
SBI Mutual Fund

SBI Funds Management Pvt Limited is a joint venture between the State Bank of India (SBI) and
financial services company Amundi, a European Asset Management company in France. It was launched
in 1987
.
Ms. Anuradha Rao is the Managing Director and CEO.
In 2013, SBI Fund Guru, an investor education initiative was launched.
L&T Mutual Fund

L&T Investment Management Limited is the Asset Management Company (AMC) for all L&T Mutual
Fund schemes. L&T Finance Holdings Limited (LTFH), a listed company, is the sponsor for the AMC. It
started its operations in 2010.
Kotak Mahindra Mutual Fund

Kotak Mahindra Mutual Fund is a part of the Kotak Group established in 1985 by Mr. Uday Kotak.
Kotak Mahindra Asset Management Company (KMAMC) is the asset manager for Kotak Mahindra
Mutual Fund (KMMF). KMAMC started its operations in 1998.
Franklin Templeton Mutual Fund
Franklin Templeton India office was set up in 1996 as Templeton Asset Management India Pvt. Limited.
This mutual fund has now set up by the name, Franklin Templeton Asset Management (India) Pt Limited.
DSP Mutual Fund

DSP BlackRock is a joint venture between DSP Group and BlackRock, world’s largest investment
management firm. DSP BlackRock Trustee Company Private Ltd. is the trustee for the DSP BlackRock
Mutual Fund.
Axis Mutual Fund

Axis Mutual Fund had launched its first scheme in 2009. Mr. Chandresh Kumar Nigam is the MD &
CEO. Axis Bank Limited holds 74.99% in Axis Mutual Fund. The remaining 25% is held by Schroder
Singapore Holdings Private Limited.

IDFC Mutual Fund

IDFC Asset Management Company Ltd. was established in 2000. IDFC Financial Holding Company
Limited holds the entire shareholding in IDFC Asset Management Company. IDFC continues to be the
sponsor of IDFC Mutual Fund.
Moreover, it also continues to hold controlling interest in IDFC AMC.
UTI Mutual Fund

UTI Mutual Fund is a part of Unit Trust of India (UTI). It was registered with SEBI in 2003. It is
promoted by SBI, LIC, Bank of Baroda and PNB.
UTI is one of the oldest and largest mutual funds in India.
UTI Mutual Fund was the pioneer in launching various schemes like Unit Linked Insurance Plan (ULIP).
Mr. Leo Puri is the Managing Director for this mutual fund house.
Motilal Oswal Mutual Fund

Motilal Oswal Asset Management Company Ltd. (MOAMC) is a public limited company incorporated
on November 14, 2008. Motilal Oswal Trustee Company Ltd. is the trustee company.
Motilal Oswal Mutual Fund is sponsored by Motilal Oswal Securities Limited. Motilal Oswal Securities
Limited (MOSL) is promoted by Motilal Oswal Financial Services Limited.
Mirae Asset Mutual Fund

Mirae Asset was founded in 1997. Mirae Asset Mutual Fund is sponsored by Mirae Asset Global
Investments Co. Limited, South Korea.
UTI Mutual Fund
The UTI mutual fund is a public mutual fund registered with the Securities and Exchange Board of India
(SEBI) on 1 February 2003. Erstwhile UTI (Unit Trust of India) was annulled which led to its bifurcation
into two - Specified Undertaking of Unit Trust of India (SUUTI) and UTI Mutual Fund (UTIMF).

Although not a government entity in its entirety, 74% stake of UTI Asset Management Company Limited
(UTI AMC) is owned by 4 main public sector organizations - Life Insurance Corp. of India (LIC), State
Bank of India (SBI), Punjab National Bank (PNB) and Bank of Baroda (BoB). 26% stake is owned by T
Rowe Price Group Inc (TRP Group), through its subsidiary T Rowe Price Global Investment Services
Ltd. (TRP).
UTIMF, headquartered in Mumbai, Maharashtra, India, is one of the oldest and largest ones in the market
with over 12 million investor accounts registered under more than 250 schemes/plans (some of which
will be discussed later) with a total AuM of nearly 1.59 trillion INR. Some of the services offered
include, Portfolio Management Services (PMS), Mutual Funds, National Pension System (NPS), Private
Equity, Private Debt and Offshore Funds.
Approximately 12.8% of the entire client base of mutual fund bodies in India (around 11 million folios
out of 86 million) is managed by UTIMF. With a lot of investment options like gold, stocks and mutual
funds among many others, UTIMF is a trusted MF body.
How to invest in UTI Mutual Funds?
Investing in mutual funds can be done in two ways - online and offline. Online investing has a huge
advantage over offline because you have the liberty to sit at home, and invest directly from your device.
Here’s how you do that through Mobikwik:
Step 1- Register for a mobikwik account, or log in if you already have one.
Step 2-Complete your KYC process by submitting your personal details, such as address, PAN card
number, and mobile number.
Step 3 - Choose a UTI mutual fund scheme of your choice (options available in a separate section later).
Step 4 - You can invest in two ways - a bulk amount once, or small amounts at regular intervals - called
SIP (Systematic Investment Plan).

Step 5 - Process completion can be noticed in your Mobikwik account which usually doesn’t take more
than 3-4 working days.
Risk Factors of Mutual Funds

The Risk-Return Trade-off:
The most important relationship to understand is the risk-return trade-off. Higher the risk greater 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. In order to do this you must first be aware of the different types of risks involved
with your investment decision.
Market Risk: Sometimes prices and yields of all securities rise and fall. Broad outside influences affecting
the market in general lead to this. This is true, may it be big corporations or smaller mid-sized companies.
This is known as Market Risk. A Systematic Investment Plan (“SIP”) that works on the concept of Rupee
Cost Averaging (“RCA”) might help mitigate this risk.
Credit Risk: The debt servicing ability (may it be interest payments or repayment of principal) of a company
through its cash flows determines the Credit Risk faced by you. This credit risk is measured 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. A well-diversified portfolio might help mitigate this
risk.
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 cost 50 paise?""Mehangai Ka Jamana Hai."
The root cause, Inflation. Inflation is the loss of purchasing power over time. A lot of times people make
conservative investment decisions to protect their capital but end up with a sum of money that can buy less
than what the principal could at the time of the investment. This happens when inflation grows faster than
the return on your investment. A well-diversified portfolio with some investment in equities might help
mitigate this risk.
Interest Rate Risk: In a free market economy interest rates are difficult if not impossible to predict. Changes
in interest rates affect the prices of bonds as well as equities. If interest rates rise the prices of bonds fall

and vice versa. Equity might be negatively affected as well in a rising interest rate environment. A well-
diversified portfolio might help mitigate this risk.
Political/Government Policy Risk: Changes in government policy and political decisions can change the
investment environment. They can create a favorable environment for investment or vice versa.
Liquidity Risk: Liquidity risk arises when it becomes difficult to sell the securities that one has purchased.
Liquidity Risk can be partly mitigated by diversification, staggering of maturities as well as internal risk
controls that lean towards purchase of liquid securities.
Different Plan
1. Open-ended scheme
An open-ended fund or scheme is one that is available for subscription and repurchase on a continuous
basis. These schemes do not have a fixed maturity period. Investors can conveniently buy and sell units at
Net Asset Value (NAV) related prices which are declared on a daily basis. The key feature of open-end
schemes is liquidity.
2. Close-ended fund scheme
A close-ended fund or scheme has a stipulated maturity period e.g. five and seven years. The fund is open
for subscription only during a specified period at the time of launch of the scheme. Investors can invest in
the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme
on the stock exchanges where the units are listed. In order to provide an exit route to the investors, some
close-ended funds give an option of selling back the units to the mutual fund through periodic repurchase
at NAV related prices. SEBI Regulations stipulate that at least one of the two exit routes is provided to the
investor i.e. either repurchase facility or through listing on stock exchanges. These mutual funds schemes
disclose NAV generally on a weekly basis.

3.funds scheme
Index funds replicate the portfolio of a particular index such as the BSE Sensitive index, S&P NSE 50
index (Nifty), etc These schemes invest in the securities in the same weightage comprising an index. NAVs
of such schemes would rise or fall in accordance with the rise or fall in the index, though not exactly by
the same percentage due to some factors known as "tracking error" in technical terms. Necessary
disclosures in this regard are made in the offer document of the mutual fund scheme.There are also
exchange traded index funds launched by the mutual funds which are traded on the stock exchanges.
4. Income/Debt oriented scheme
The aim of income funds is to provide regular and steady income to investors. Such schemes generally
invest in fixed income securities such as bonds, corporate debentures, Government securities and money
market instruments. Such funds are less risky compared to equity 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 such funds 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 term investors may not bother about these fluctuations.
5. Gilt fund
These funds invest exclusively in government securities. Government securities have no default risk. NAVs
of these schemes also fluctuate due to change in interest rates and other economic factors as is the case
with income or debt oriented schemes.
Different type of option of mutual fund
Various investment options in Mutual Funds offerTo cater to different investment needs, Mutual Funds
offer various investment options. Some of the important investment options include:
1. Growth Option: Dividend is not paid-out under a Growth Option and the investor realises only the capital
appreciation on the investment (by an increase in NAV).
2. Dividend Payout Option: Dividends are paid-out to investors under the Dividend Payout Option.
However, the NAV of the mutual fund scheme falls to the extent of the dividend payout.
3. Dividend Reinvestment Option: Here the dividend accrued on mutual funds is automatically re-invested
in purchasing additional units in open-ended funds. In most cases mutual funds offer the investor an option
of collecting dividends or re-investing the same.
4. Retirement Pension Option: Some schemes are linked with retirement pension. Individuals participate
in these options for themselves, and corporations participate for their employees.
5. Insurance Option: Certain Mutual Funds offer schemes that provide insurance cover to investors as an
added benefit.
6. Systematic Investment Plan (SIP): Here the investor is given the option of preparing a predetermined
number of post-dated cheques in favour of the fund. The investor is allotted units on a predetermined date
specified in the offer document at the applicable NAV.
Mutual fund prospectuses
Prospectus
When you purchase shares of a mutual fund, the fund must provide you with a prospectus. But you can
— and should — request and read a fund's prospectus before you invest. The prospectus is the fund's
selling document and contains valuable information, such as the fund's investment objectives or goals,
principal strategies for achieving those goals, principal risks of investing in the fund, fees and expenses,
and past performance. The prospectus also identifies the fund's managers and advisers and describes how
to purchase and redeem fund shares.

While they may seem daunting at first, mutual fund prospectuses contain a treasure trove of valuable
information. The SEC requires funds to include specific categories of information in their prospectuses
and to present key data (such as fees and past performance) in a standard format so that investors can
more easily compare different funds.
Here's some of what you'll find in mutual fund prospectuses:
Date of Issue — The date of the prospectus should appear on the front cover. Mutual funds must update
their prospectuses at least once a year, so always check to make sure you're looking at the most recent
version.
Risk/Return Bar Chart and Table — Near the front of the prospectus, right after the fund's narrative
description of its investment objectives or goals, strategies, and risks, you'll find a bar chart showing the
fund's annual total returns for each of the last 10 years (or for the life of the fund if it is less than 10 years
old). All funds that have had annual returns for at least one calendar year must include this chart.
Fee Table — Following the performance bar chart and annual returns table, you'll find a table that
describes the fund's fees and expenses. These include the shareholder fees and annual fund operating
expenses described in greater detail above. The fee table includes an example that will help you compare
costs among different funds by showing you the costs associated with investing a hypothetical $10,000
over a 1-, 3-, 5-, and 10-year period.
Financial Highlights — This section, which generally appears towards the back of the prospectus,
contains audited data concerning the fund's financial performance for each of the past 5 years.
Here you'll find net asset values (for both the beginning and end of each period), total returns, and
various ratios, including the ratio of expenses to average net assets, the ratio of net income to average net
assets, and the portfolio turnover rate.
Profile
Some mutual funds also furnish investors with a "profile," which summarizes key information contained
in the fund's prospectus, such as the fund's investment objectives, principal investment strategies,

principal risks, performance, fees and expenses, after-tax returns, identity of the fund's investment
adviser, investment requirements, and other information.
Statement of Additional Information ("SAI")
Also known as "Part B" of the registration statement, the SAI explains a fund's operations in greater
detail than the prospectus — including the fund's financial statements and details about the history of the
fund, fund policies on borrowing and concentration, the identity of officers, directors, and persons who
control the fund, investment advisory and other services, brokerage commissions, tax matters, and
performance such as yield and average annual total return information. If you ask, the fund must send
you an SAI. The back cover of the fund's prospectus should contain information on how to obtain the
SAI.
Shareholder Reports
A mutual fund also must provide shareholders with annual and semi-annual reports within 60 days after
the end of the fund's fiscal year and 60 days after the fund's fiscal mid-year. These reports contain a
variety of updated financial information, a list of the fund's portfolio securities, and other information.
The information in the shareholder reports will be current as of the date of the particular report (that is,
the last day of the fund's fiscal year for the annual report, and the last day of the fund's fiscal mid-year for
the semi-annual report).
Past Performance
A fund's past performance is not as important as you might think. Advertisements, rankings, and ratings
often emphasize how well a fund has performed in the past. But studies show that the future is often
different. This year's "number one" fund can easily become next year's below average fund.
Be sure to find out how long the fund has been in existence. Newly created or small funds sometimes
have excellent short-term performance records. Because these funds may invest in only a small number
of stocks, a few successful stocks can have a large impact on their performance. But as these funds grow
larger and increase the number of stocks they own, each stock has less impact on performance. This may
make it more difficult to sustain initial results.

While past performance does not necessarily predict future returns, it can tell you how volatile (or stable)
a fund has been over a period of time. Generally, the more volatile a fund, the higher the investment risk.
If you'll need your money to meet a financial goal in the near-term, you probably can't afford the risk of
investing in a fund with a volatile history because you will not have enough time to ride out any declines
in the stock market.
Looking Beyond a Fund's Name

Don't assume that a fund called the "XYZ Stock Fund" invests only in stocks or that the "Martian High-
Yield Fund" invests only in the securities of companies headquartered on the planet Mars. The SEC
requires that any mutual fund with a name suggesting that it focuses on a particular type of investment
must invest at least 80% of its assets in the type of investment suggested by its name. But funds can still
invest up to one-fifth of their holdings in other types of securities — including securities that you might
consider too risky or perhaps not aggressive enough.
Bank Products versus Mutual Funds

Many banks now sell mutual funds, some of which carry the bank's name. But mutual funds sold in
banks, including money market funds, are not bank deposits. As a result, they are not federally insured by
the Federal Deposit Insurance Corporation (FDIC).
Money Market Matters
Don't confuse a "money market fund" with a "money market deposit account." The names are similar, but
they are completely different:
A money market fund is a type of mutual fund. It is not guaranteed or FDIC insured. When you buy
shares in a money market fund, you should receive a prospectus.
A money market deposit account is a bank deposit. It is guaranteed and FDIC insured. When you deposit
money in a money market deposit account, you should receive a Truth in Savings form.

Glossary of Key Mutual Fund Terms
12b-1 Fees — fees paid by the fund out of fund assets to cover the costs of marketing and selling fund
shares and sometimes to cover the costs of providing shareholder services. "Distribution fees" include
fees to compensate brokers and others who sell fund shares and to pay for advertising, the printing and
mailing of prospectuses to new investors, and the printing and mailing of sales literature. "Shareholder
Service Fees" are fees paid to persons to respond to investor inquiries and provide investors with
information about their investments.
Account Fee — a fee that some funds separately impose on investors for the maintenance of their
accounts. For example, accounts below a specified dollar amount may have to pay an account fee.
Back-end Load — a sales charge (also known as a "deferred sales charge") investors pay when they
redeem (or sell) mutual fund shares, generally used by the fund to compensate brokers.
Classes — different types of shares issued by a single fund, often referred to as Class A shares, Class B
shares, and so on. Each class invests in the same "pool" (or investment portfolio) of securities and has the
same investment objectives and policies. But each class has different shareholder services and/or
distribution arrangements with different fees and expenses and therefore different performance results.
Closed-End Fund — a type of investment company that does not continuously offer its shares for sale but
instead sells a fixed number of shares at one time (in the initial public offering) which then typically trade
on a secondary market, such as the New York Stock Exchange or the Nasdaq Stock Market. Legally
known as a "closed-end company."
Contingent Deferred Sales Load — a type of back-end load, the amount of which depends on the length
of time the investor held his or her shares. For example, a contingent deferred sales load might be (X)% if

an investor holds his or her shares for one year, (X-1)% after two years, and so on until the load reaches
zero and goes away completely.
Conversion — a feature some funds offer that allows investors to automatically change from one class to
another (typically with lower annual expenses) after a set period of time. The fund's prospectus or profile
will state whether a class ever converts to another class.
Contingent Deferred Sales Load — a type of back-end load, the amount of which depends on the length
of time the investor held his or her shares. For example, a contingent deferred sales load might be (X)% if
an investor holds his or her shares for one year, (X-1)% after two years, and so on until the load reaches
zero and goes away completely.
Exchange Fee — a fee that some funds impose on shareholders if they exchange (transfer) to another
fund within the same fund group.
Exchange-Traded Funds — a type of an investment company (either an open-end company or UIT)

whose objective is to achieve the same return as a particular market index. ETFs differ from traditional
open-end companies and UITs, because, pursuant to SEC exemptive orders, shares issued by ETFs trade
on a secondary market and are only redeemable from the fund itself in very large blocks (blocks of
50,000 shares for example).
Expense Ratio — the fund's total annual operating expenses (including management fees, distribution
(12b-1) fees, and other expenses) expressed as a percentage of average net assets.
Front-end Load — an upfront sales charge investors pay when they purchase fund shares, generally used
by the fund to compensate brokers. A front-end load reduces the amount available to purchase fund
shares.

Index Fund — describes a type of mutual fund or Unit Investment Trust (UIT) whose investment
objective typically is to achieve the same return as a particular market index, such as the S&P 500
Composite Stock Price Index, the Russell 2000 Index, or the Wilshire 5000 Total Market Index.
Investment Adviser — generally, a person or entity who receives compensation for giving individually
tailored advice to a specific person on investing in stocks, bonds, or mutual funds. Some investment
advisers also manage portfolios of securities, including mutual funds.
Investment Company — a company (corporation, business trust, partnership, or limited liability

company) that issues securities and is primarily engaged in the business of investing in securities. The
three basic types of investment companies are mutual funds, closed-end funds, and unit investment trusts.
Load — see "Sales Charge."
Management Fee — fee paid out of fund assets to the fund's investment adviser or its affiliates for
managing the fund's portfolio, any other management fee payable to the fund's investment adviser or its
affiliates, and any administrative fee payable to the investment adviser that are not included in the "Other
Expenses" category. A fund's management fee appears as a category under "Annual Fund Operating
Expenses" in the Fee Table.
Market Index — a measurement of the performance of a specific "basket" of stocks considered to

represent a particular market or sector of the U.S. stock market or the economy. For example, the Dow
Jones Industrial Average (DJIA) is an index of 30 "blue chip" U.S. stocks of industrial companies
(excluding transportation and utility companies). Mutual Fund — the common name for an open-end
investment company. Like other types of investment companies, mutual funds pool money from many

investors and invest the money in stocks, bonds, short-term money-market instruments, or other
securities. Mutual funds issue redeemable shares that investors purchase directly from the fund (or
through a broker for the fund) instead of purchasing from investors on a secondary market.
NAV (Net Asset Value) — the value of the fund's assets minus its liabilities. SEC rules require funds to
calculate the NAV at least once daily. To calculate the NAV per share, simply subtract the fund's
liabilities from its assets and then divide the result by the number of shares outstanding.
No-load Fund — a fund that does not charge any type of sales load. But not every type of shareholder fee
is a "sales load," and a no-load fund may charge fees that are not sales loads. No-load funds also charge
operating expenses.
Open-Ended Company — the legal name for a mutual fund. An open-end company is a type of
investment company
Operating Expenses — the costs a fund incurs in connection with running the fund, including
management fees, distribution (12b-1) fees, and other expenses.
Portfolio — an individual's or entity's combined holdings of stocks, bonds, or other securities and assets.
Profile — summarizes key information about a mutual fund's costs, investment objectives, risks, and
performance. Although every mutual fund has a prospectus, not every mutual fund has a profile.
Prospectus — describes the mutual fund to prospective investors. Every mutual fund has a prospectus.
The prospectus contains information about the mutual fund's costs, investment objectives, risks, and
performance. You can get a prospectus from the mutual fund company (through its website or by phone
or mail). Your financial professional or broker can also provide you with a copy.

Purchase Fee — a shareholder fee that some funds charge when investors purchase mutual fund shares.
Not the same as (and may be in addition to) a front-end load.
Redemption Fee — a shareholder fee that some funds charge when investors redeem (or sell) mutual
fund shares. Redemption fees (which must be paid to the fund) are not the same as (and may be in
addition to) a back- end load (which is typically paid to a broker). The SEC generally limits redemption
fees to 2%.
Sales Charge (or "Load") — the amount that investors pay when they purchase (front-end load) or
redeem (back-end load) shares in a mutual fund, similar to a commission.
The SEC's rules do not limit the size of sales load a fund may charge, but NASD rules state that mutual
fund sales loads cannot exceed 8.5% and must be even lower depending on other fees and charges
assessed.
Shareholder Service Fees — fees paid to persons to respond to investor inquiries and provide investors
with information about their investments. See also "12b-1 fees."
Statement of Additional Information (SAI) — conveys information about an open- or closed-end fund
that is not necessarily needed by investors to make an informed investment decision, but that some
investors find useful. Although funds are not required to provide investors with the SAI, they must give
investors the SAI upon request and without charge. Also known as "Part B" of the fund's registration
statement.

Total Annual Fund Operating Expense — the total of a fund's annual fund operating expenses, expressed
as a percentage of the fund's average net assets. You'll find the total in the fund's fee table in the
prospectus.
Unit Investment Trust (UIT) — a type of investment company that typically makes a one-time "public
offering" of only a specific, fixed number of units. A UIT will terminate and dissolve on a date
established when the UIT is created (although some may terminate more than fifty years after they are
created). UITs do not actively trade their investment portfolios.
Future trends of MF in India that will catch up on 2021
The year 2020 was painful for the Indian mutual fund industry. After a surge in flows during the covid-
19- driven stock market crash in March, the industry saw sustained net outflows from its equity schemes,
a much- watched barometer. The outflows coincided with a record number of new demat accounts,
expected to touch 10 million in FY21, suggesting that India’s retail investors were dumping mutual funds
to try their luck in the stock market.
Fintech firms, which provide and rebalance model stock portfolios at low cost, tied up with brokerages,
disrupting the very USP of the industry. However, within all the gloom and doom, a few new models
have taken root and may yet rescue mutual funds in 2021.
Domestic-global MF
Although not formally a mutual fund category, this model was pioneered by PPFAS Mutual Fund in its
flagship scheme PPFAS Long Term Equity. This model invests up to 35% of an equity fund’s assets into
foreign stocks, with the rest in domestic Indian stocks. This allows the scheme to continue to be taxed as
an equity fund under Indian tax law.
PPFAS Long Term Equity saw its assets under management (AUM) more than double

from around ₹2,500 crore at the end of December 2019 to ₹5,757 crore at the end of November 2020.
Returns of 33.5% (as of 29 December, according to Value Research data) since the start of the year
account for some of this growth, but robust inflows are the dominant contributor.
Other AMCs have begun to adopt the model. Axis Mutual Fund adopted it in its Growth Opportunities
Fund, ESG Fund and Special Situations Fund, while DSP Mutual Fund used it in its Value Fund launched
in November seeking value opportunities in India and abroad.
Some AMCs such as Tata Asset Management have simply amended the mandates of existing schemes to
include global investing. Even SBI Mutual Fund, India’s largest fund house by assets, has taken a partial
exposure to global stocks in its Focused Equity Fund.
“A 65:35 domestic to international equity structure provides a tax-efficient route to international investing.
Diversification is another advantage," said Vishal Dhawan, founder, Plan Ahead Wealth Advisors, a Sebi-
registered investment adviser.
Roll-down maturity
Debt mutual funds in India have long struggled with the problem of being unable to explicitly guarantee
returns. This turns retail investors towards fixed deposits and bonds (even risky ones) as they come with
a fixed interest rate. Roll-down maturity is the industry’s response to this problem. It involves specifying
a target maturity date and holding bonds whose maturity roughly corresponds with the date in question.
This allows the fund’s return to be predictable if it is held till the target date, although there’s no explicit
guarantee.
The strategy is being seen as a successor to fixed maturity plans (FMPs) which suffered post the IL&FS
debt crisis in 2018. “Roll-down is an evolution over FMPs which suffered from the limitations of being
closed- end. The discourse around roll-down is also about its structure and ability to deliver a predictable
return rather than tax which was the selling point of FMPs," said Dhawan.

The roll-down structure is used in open-ended funds, allowing investors to exit at any point of time,
unlike the lock-in of FMPs. If the debt scheme in question is held for more than three years, investors are
taxed at 20% on capital gains and given the benefit of indexation, giving them an advantage over FDs.
Further, if the bonds held by the roll-down scheme are high quality, there is more certainty on returns.
The concept was popularized by the Bharat Bond ETFs (Exchange Traded Funds) which were launched
in December 2019 and again in fresh tranches in mid-2020 and has been adopted widely across the
industry
ESG Investing
ESG or Environmental, Social and Global Investing is an idea that caught on in 2020. ESG philosophy
seeks to weed out companies which fail to satisfy specified norms on corporate governance,
environmental impact or social awareness. Until 2019, there were only a couple of ESG schemes, but in
2020, most of India’s large AMCs, including Aditya Birla Sun Life, Axis, Mirae, Kotak and ICICI
Prudential, launched such schemes.
The jury is out on whether the trend is more than a marketing gimmick, but experts largely favour it.
“More such schemes have been launched and I expect it will move from a thematic play to a core
investment philosophy across funds. This will help investors in the long run," said Kaustubh Belapurkar,
director, fund research, Morningstar India Advisor.
Riskometer
The year saw the Securities and Exchange Board of India (Sebi) taking a number of steps, including
tighter rules on debt funds investing in risky papers and a requirement to maintain a cash buffer.
According to Vidya Bala, co-founder, Prime Investor, a mutual fund research portal, a revamp of the
riskometer by Sebi should be counted among the big developments of 2020. “AMCs will have to come
up with a dynamic riskometer label that is more aligned to the actual risk in the scheme rather than a
generic check-box for all schemes in one category," said Bala. The riskometer is a risk labelling system
which accords a particular risk level to a mutual fund such as low, moderate or high risk. The regulator

framed new guidelines in 2020 calling for the label to be linked to a scheme’s actual portfolio rather than
the category that it was placed in.

Chapter 2
Research Methodology
Title of the study
A Study on Mutual Funds
Statement of the problem
There are a lot of investment avenues available today in the financial market for an investor with an
investable surplus. He can invest in Bank Deposits, Corporate Debentures, and Bonds where there is low
risk but low return. He may invest in Stock of companies where the risk is high and the returns are also
proportionately high. So People began opting for portfolio managers with expertise in stock markets who
would invest on their behalf. Thus we had wealth management services provided by many institutions.
However they proved too costly for a small investor. These investors have found a good shelter with the
mutual funds.Mutual fund industry has seen a lot of changes in past few years with multinational
companies coming into the country, bringing in their professional expertise in managing funds
worldwide. Now investors have a wide range of Schemes to choose from depending on their individual
profiles with moderate risk and return.
Objectives of the study
• 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 and analyse them
• 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

Research Methodology
Research Methodology is a systematic method of discovering new facts or verifying old facts, their
sequence, inter-relationship, simple explanation and the natural laws which govern them.
There are mainly two types of research methodology i.e. Primary research and Secondary research.
To achieve the objective of studying the stock market data has been collected
This study is completely based on the secondary data. This data is collected from various sources
especially from the journals, magazines, articles, books and mainly from the internet.
Scope of the Study:
• The main focus of the study was to track the performance of the different mutual fund schemes.
Since different companies come out with similar themes in the same season, it becomes difficult
for the company to constantly perform well so as to survive the competition and provide
maximum capital appreciation or return as the case may be.
• Other than the market, the performance of the fund depends on the kind of stock selected by the
fund managers of the company.
• The analysis is done on the performance of funds with the same theme or sector and reason out
why a fund performs better than the others in the lot.
• It is limited to investors and their investment preferences. Study objective is to investigate the
return on investment in share market and to understand the fund sponsor qualities influencing the
selection of Mutual Funds/Schemes.
• Also to find out that how far the mutual fund schemes are able to win the confidence of the
investors.
Purpose for the Study:
The main purpose of this study is to know about mutual fund and its functioning. This helps to know in
details about mutual fund industry right from its inception stage, growth and future prospects. It also

helps in understanding different schemes of mutual funds, since the study depends upon different
schemes like Equity, Dept, Balanced as well as the returns associated with those schemes.
Source
All the project related information and facts are collected from the Websites of the relevant Mutual funds
companies. Most of the information related to mutual funds are secondary data from the books of LM
bhole and VK Bhalla who have written “financial institutions and markets” and “Investment
Management” respectively. A short survey was also conducted in order to determine the preferences of
the people when it comes to investment.
PRIMARY:
The data, was collected for the first time and it is the original data.
In this project the primary data has been taken from 100 candidates who had invested in the mutual
funds.
And also from who haven’t invested.
SECONDARY:
The secondary information is mostly taken from websites, books, journals, etc.
POPULATION (for survey)

The survey was conducted on over 150 investors.
Limitation of the Study
• The study depends only on secondary data.
• The study is limited to the different schemes available under the mutual funds selected
• The study is limited to selected mutual fund schemes.
• The lack of information sources for the analysis part.

Chapter Scheme
chapter 1
• INTRODUCTION
• Brief review of literature
• Objectives of the study
• Research methodology
• Limitation of the study
• Chapter planning(research design)
Chapter-2
• Conceptual framework
• What are mutual funds?
• Brief history of mutual funds in india
• Advantages of mutual funds
• disadvantages of mutual funds
• Terms related to mutual funds
• Classification of mutual funds
• Governing bodies
• overview of asset management comapnies
• Risk factors of mutual funds
Chapter-3
• Industry profile
• SBI mutual fund schemes
• About SBI
• Best SBI schemes
Chapter- 4
• Data analysis
• Findings
Chapter 5
• Bibliography
• Annexure

Chapter 3:
Industry profile
Introduction A mutual fund is a type of financial vehicle made up of a pool of money collected from
many investors to invest in securities like stocks, bonds, money market instruments and other assets.
Mutual funds are operated by professional money managers, who allocate the funds‟ assets and attempt
to produce capital gains or income for the fund‟s investors. A mutual fund‟s portfolio is structured and
maintained to match the investment objectives stated in its prospectus. Mutual funds give small or
individual investors access to professionally managed portfolios of equities, bonds and other securities.
Each shareholder, therefore, participates proportionally in the gains or losses of the fund. Mutual funds
invest in a vast number of securities, and performance is usually tracked as the change in the total market
cap of the fund- derived by the aggregating performance of the underlying investments. Definition: A
mutual fund is a professionally-managed investment scheme, usually run by an asset management
company that brings together a group of people and invests their money in stocks, bonds and securities.
Description: As an investor, you can buy mutual fund 'units', which basically represent your share of
holdings in a particular scheme. These units can be purchased or redeemed as needed at the fund's current
net asset value (NAV). These NAVs keep fluctuating, according to the fund's holdings. So, each investor
participates proportionally in the gain or loss of the fund. All the mutual funds are registered with SEBI.
They function within the provisions of strict regulation created to protect the interests of the investor. The
biggest advantage of investing through a mutual fund is that it gives small investors access to
professionally-managed, diversified portfolios of equities, bonds and other securities, which would be
quite difficult to create with a small amount of capital. A mutual fund is a type of financial vehicle made
up of a pool of money collected from many investors to invest in securities like stocks, bonds, money
market instruments, and other assets. Mutual funds are operated by professional money managers, who
allocate the fund‟s assets and attempt to produce capital gains or income for the fund‟s investors. A
mutual fund‟s portfolio is structured and maintained to match the investment objectives stated in its
prospectus. Mutual funds give small or individual investors access to professionally managed portfolios

of equities, bonds, and other securities. Each shareholder, therefore, participates proportionally in the
gains or losses of the fund. Mutual funds invest in a vast
number of securities, and performance is usually tracked as the change in the total market cap of the
fund-derived by the aggregating performance of the underlying investments. A mutual fund is a trust that
pools the savings of a number of investors who share a common financial goal. The money, thus,
collected is then invested in capital market instruments such as shares, debentures and other securities.
The income earned through these investments and the capital appreciation realized is shared by its unit
holders in proportion to the number of units owned by them. Thus, a mutual fund is the most suitable
investment for the common man as it offers an opportunity to invest in a diversified, professionally
managed basket of securities at a relatively low cost. The value of the mutual fund company depends on
the performance of the securities it decides to buy. So, when you buy a unit or share of a mutual fund,
you are buying the performance of the portfolio or,
more precisely, a part of the portfolio‟s value. Investing in a share of a mutual fund is different from
investing in shares of stock. Unlike stock, mutual fund shares do not give its holders any voting rights, A
share of a mutual fund represents investment in many different stocks (or other securities) instead of just
one holding. That‟s why the price of a mutual fund share is referred to as the net asset value (NAV) per
share, sometimes expressed as NAVPS. A funds‟ NAV is desired by dividing the total value of the
securities in the portfolio by the total amount of shares outstanding.
Players in Mutual Fund A mutual fund is set up either in the form of a trust or an investment company.
The trust is established by the Asset Management Company (AMC). The trustee holds the property of the
trust for the benefit of its unit holders. Whereas, the investment company structure, the mutual fund is
established as a public listed company. The AMC, as sponsor of the mutual fund, appoints its board of
directors to manage its affairs, and a custodian for holding all the assets of the investment company. An
AMC is licensed by the SECP and is eligible to operate the mutual fund and manage its investments.
a) Asset Management Company- An Asset Management Company is a Non-Banking Finance Company

licensed by the SECP for the management of mutual funds and for the benefit of the unit holders.

b) Participants - Participants are the ones investing in a mutual fund and anyone holding a valid Pakistani
computerized national identity card is eligible to become a participant to a mutual fund.
c) Trustee - A trustee in the case of Mutual funds is a holding service who has administrative power for
managing the money, property or assets used in mutual funds. The trustee can be an individual person,
member of the board of directors, a company or a bank appointed with the approval of the SECP. They
are trusted to make decisions in the beneficiary‟s best interest.
d) Custodian - A custodian generally acts as a caretaker or watchdog mainly responsible for monitoring
the operations of the mutual fund and actions of the fund manager and other parties related to the mutual
fund. A custodian ensures that a mutual fund is being managed in accordance with the requirements
stipulated under the regulatory framework and the constitutive documents of the mutual fund. Hold
securities Receives and delivers securities Collects income/ interest/ dividends on the securities Holds
and processes cash.
e) Registrar - A registrar of a mutual fund may be an individual or a firm / company. The AMC may
itself act as a registrar, or appoint the registrar to perform following functions: Receiving and processing
the application form of a mutual fund. Issuing unit/share certificates on behalf of mutual
funds. Maintain detailed records of unit holder‟s transactions. Purchasing, selling, transferring,
redeeming the unit/ share certificates. Issuing of income/ dividend warrants, broker cheque etc. Creating
security interest on units/certificates for allowing loans against them.
f) Advertiser: Major responsibilities of an advertiser include: Helping mutual funds organizers to prepare
a media plan for marketing the fund. Issuing/buying the space in newspapers and other electronic media
for advertising the various features of a fund. Arranging or hoardings at public places.
g) Advisor/ Manager: It is generally a corporate entity that does the following jobs Professional advice
on the fund‟s investments. Advice on asset management services. Besides the above, other players are as
under:
a) Fund Administrator
b) Fund Accounting Services
C) Legal Advisors

d) Fund Officers
e) Underwriters/ Distributors
f) Legal Advisors
SBI Mutual fund
1. What are SBI Mutual Funds?

The SBI Mutual Fund Trustee Company Private Limited was constituted as a Trust under the provisions
of the Indian Trust Act 1882. It is registered with the Securities and Exchange Board of India (SEBI).
SBI Mutual Fund is a joint venture between the State Bank of India and Amundi, a European asset
management company which is a subsidiary jointly created by Crédit Agricole and Société Générale. The
corporate headquarter of the SBI Mutual Fund, which is India’s largest bank sponsored mutual fund, is
based out of Mumbai. It is also the first bank-sponsored fund that launched an offshore fund, Resurgent
India Opportunity Fund.
How to Invest in SBI Mutual Funds?

Investing in SBI mutual funds has been made simpler than ever before whether you are a seasoned
investor or a novice in this area. You can visit ClearTax to choose from a list of handpicked funds that
are curated keeping in mind the risk profile and investment objective of investors. With ClearTax, you
can be assured of a hassle-free quick process of selecting any product from your favourite fund house –
SBI Mutual Fund, with just one KYC formality that will take not more than 7 minutes of your
time.ClearTax simplifies investing for you so that you can make better and wiser decisions. The process
is very simple on ClearTax. Step 1: Select the fund(s) and the amount you want to invest every month
Step 2: Provide your details Step 3: Make payment and you are done

Process and Documents required to invest in SBI Mutual Funds via ClearTax
Money laundering and corruption can cripple the economy and the stability of our country. Here, Know
Your Customer (KYC) and In-Person Verification (IPV) can help a financial institution significantly.
However, ClearTax doesn’t believe in inconveniencing their investors. So they have enabled a way to do
KYC in a quick and simple way. What’s more, if investing via ClearTax Invest, the investor needs to do
it only once for their first investment. KYC is necessary for all fund houses. If you are investing through
ClearTax you need to do your KYC just once. The same KYC will be used for all further investments.
KYC verification through ClearTax is a very simple process. You can verify by:
Using OTP sent to your Aadhaar-registered mobile number
By uploading photos/scans of the required documents
ID Proofs: You can submit a Xerox copy of PAN Card, Passport, Aadhaar Card, Voter ID or Driving
License. Other central government approved documents like NREGA job cards are also accepted.
Residential proofs: You can submit the same ID proof (except PAN), if the address on it is your current
residential address.
Rental/lease agreement, most utility bills and ration cards can also serve the purpose. If your permanent
address and correspondence address are not the same, then submit proof for both.
About SBI Mutual Funds
SBI MF has been credited with successfully managing the country’s offshore funds since the year 1988.
SBI Funds Management is also one of the first banks to come up with an offshore fund. The aim of the
SBIMF is to offer its investors the opportunity for long-term growth in a diverse array of stock of Indian
companies.
The dedicated fund house is known for its enterprising approach to risk-management backed by a highly
experienced risk management team and financial experts. The SBI mutual funds are constructed with the

help of extensive investment research to outperform the industry benchmarks. The Fund House also
engages in an active management style to achieve this. The schemes that are offered are as diverse as can
be and the blend of the products – large, mid and small cap or sector specific, are designed to leverage the
growth opportunities of Indian equities. There are several benefits of investing in SBI Mutual Funds:
• The SBI Funds Management has comprehensive experience and expertise and is one of the major
advisors to pension funds, financial institutions and asset management companies
• The products offered are picked based on empirical research and potential, and for the most part, carry
a CRISIL rating of three or more
• SBIMF over the years has excelled at understanding the objective and needs of its investor and has
catered to their risk-return expectations
• There is a wide spectrum of funds that SBI offers, to suit investors' appetite for high to moderate to low
risk.
• Depending on your personalized requirements, you can pick from a wide range of customized
investment plans to meet your investment needs
• SBI MF offers both domestic funds and offshore funds
Best SBI Mutual Fund Schemes( Top 10 as per SBI’s data)
1. SBI Technology Opportunities Fund

2. SBI Small Cap Fund
3. SBI Contra Fund
4. SBI Magnum COMMA Fund
5. SBI Magnum Mid Cap Fund

6. SBI Large And Midcap Fund

7. SBI Consumption Opportunities Fund

8. SBI Infrastructure Fund
9. SBI Magnum Multicap Fund
10. SBI Magnum Tax Gain Fund.
SBI Mutual Fund Key Information
Mutual Fund : SBI Mutual Fund

Setup Date : 29th June 1987
Incorporation Date : 07th February 1992 Sponsor State Bank of India
Trustee : SBI Mutual Fund Trustee Company Private Limited
CIO : Mr. Navneet Munot CEO / MD Mrs. Anuradha Rao
Assets Managed : Rs. 2,83,000 lakh crore (31st March 2019)
(a) Vision statement: “To be the most preferred and the largest fund house for all asset classes, with a
consistent track record of excellent returns and best standards in customer service, product innovation,
technology and HR practices.”
(b) Company Objective: The investment objective for all SBI mutual funds is setting benchmarks
time and again for their investors. SBI Mutual Fund House endeavors to outperform their benchmarks
through well-researched investments in Indian equities. This is achieved by implementing an active
management style based on fundamental analysis, leading to the construction of a portfolio. It could be
blended, large cap, mid cap, or specific sector oriented, which aims at capturing the growth potential of
Indian equities.
(c) Key milestones
• 1987 - Establishment of SBI Mutual Fund

• 1991 - Launch of SBI Magnum Equity Fund

• 1999 - Launch of sector funds, India's first contra fund: SBI Contra Fund
• 2004 - Joint Venture with Societe General Asset Management
• 2006 - Became the first bank-sponsored fund to launch an offshore fund – SBI Resurgent India
Opportunities Fund
• 2011 - Stake Transfer from SGAM to Amundi Asset Management
• 2013 - Acquisition of Daiwa Mutual Fund, part of the Tokyo-based Daiwa Securities
Group 2013 Launch of SBI Fund Guru, an investor education initiative
• 2015 - Employees' Provident Fund Organization decided to invest in the equity market for the first time
by investing Rs. 5,000 crore in the Nifty and Sensex ETFs (Exchange Traded Fund) of SBI Mutual Fund
• 2018 - First AMC in India to launch an Environment, Social and Governance (ESG) fund viz Magnum
Equity ESG Fund 2018 - Signatory to the United Nations Principles for Responsible Investment (UNPRI)
(d) Types of SBI mutual fund
1. SBI Blue-chip Fund
This is a Large Cap Equity Oriented Mutual Fund launched on January 1, 2013. It is a fund with moderately
high risk and has given a return of 17.88% since its launch. As this is a sector fund with its main focus in
the infrastructure industry, the objective of the fund would be to invest in equity stocks of those companies
which are either directly or indirectly engaged in infrastructure growth in the Indian economy and aims at
long-term growth in capital.
2. SBI Magnum Multi Cap Fund
This is a Multi-Cap Equity Oriented Mutual Fund launched on January 4, 2013. It is a fund with moderately
high risk and has given a return of 19.80% since its launch. Being a multi-cap fund, the objective of this
scheme would invest in equities and equity related instruments of companies spanning the entire market
capitalization spectrum. The fund will invest 50-90% in large-cap stocks, 10-40% in mid-cap stocks and
up to 10% in small-cap stocks. A few years ago, this was the less known among SBI schemes. But a steady
improvement in performance has now made this fund one of the best performing in the multi-cap category

3. SBI Emerging Businesses Fund This is a Mid Cap Equity Oriented Mutual Fund launched on January 1,
2013. It is a fund with high risk and has given a return of 17.05% since its launch. This is one of the best
performing among mid-cap mutual fund category. The objective of the fund is to invest in emerging
business themes, primarily based on the export or outsourcing opportunities and global opportunities of
such themes. It will also focus on emerging domestic investment themes.
4. SBI Small & Midcap Fund
This is a Small Cap Equity Oriented Mutual Fund launched on January 2, 2013. It is a fund with high risk
and has given a return of 34.21% since its launch. Being a small cap fund, the objective of this scheme is
to generate income and long-term capital appreciation by investing in a diversified portfolio of
predominantly equity and equity-related securities small & mid-cap companies.
5. SBI Magnum Balanced Fund
This is a Hybrid Equity Oriented Mutual Fund launched on January 1, 2013. It is a fund with moderate
risk and has given a return of 17.19% since its launch. This fund maintains a steady state equity debt mix
in its portfolio. The equity part is multi-cap, with higher exposure to the mid-cap segment as compared to
the hybrid fund offered by other fund houses. The portfolio over time has featured a 68-70% equity
portion, with the rest in debt. Large caps make up about 50-55% the equity portion.
6. SBI Magnum COMMA Fund
This is a Sector Equity Oriented Mutual Fund launched on January 4, 2013. It is a fund with high risk and
has given a return of 12.51% since its launch.
7. SBI Magnum Multiplier Fund – Direct – Growth

This is a Multi-Cap Equity Oriented Mutual Fund launched on January 1, 2013. It is a fund with
moderately high risk and has given a return of 18.46% since its launch. Being a multi-cap fund, the
objective of this scheme would invest in equities and equity related instruments of companies spanning
the entire market capitalization spectrum.
8. SBI Short Term Debt Fund
This is a short term debt fund launched on January 1, 2013. It is a debt fund with low risk and has given
a return of 8.63% since its launch.
9. SBI Regular Savings Fund – Direct – Growth
This is an income type debt oriented fund launched on January 28, 2013. It is a debt fund with low risk
and has given a return of 10.05% since its launch.
Competitors
Some of the major competitors for SBI Mutual Fund in the mutual fund sector are
1. Axis Asset Management Company Ltd.

2. Birla Sun Life Asset Management Company Ltd.
3. HDFC Asset Management Company Ltd.
4. ICICI Prudential Asset Management Company Ltd.
5. IDBI Asset Management Ltd.
6. L&T Investment Management Ltd.
7. Reliance Capital Asset Management Ltd.
8. Sundaram Asset Management Company Ltd.
9. UTI Asset Management Company Ltd.
10. Tata Asset Management Ltd.

11. NG Investment Management (India) Pvt. Ltd.

12. India bulls Asset Management Company Ltd.
13. Edelweiss Asset Management Ltd.
14. Kotak Mahindra Asset Management Company Ltd.
Aditya Birla Sun Life Mutual Fund
Mutual Fund Aditya Birla Sun Life Mutual Fund
Setup Date Dec-23-1994
Incorporation Date Sep-05-1994
Sponsor Aditya Birla Capital Ltd. / Sun Life (India) AMC Investments Inc.
Trustee Aditya Birla Sun Life Trustee Private Limited
Chairman Mr. Kumar Mangalam Birla
CEO / MD Mr. A. Balasubramanian
CIO N.A
Compliance Officer Ms. Hemanti Wadhwa
Investor Service Officer Ms. Keerti Gupta
Top 5 ABSLMF 1yr Return 3yr Return 5yr Return 10yr Return

Aditya Birla Sun Life Advantage Fund 8.60 11.28 21.81 11.50
Aditya Birla Sun Life Equity Fund 9.89 12.87 21.55 11.93
Aditya Birla Sun Life Floating Rate Fund 6.87 7.38 8.13 7.98
Aditya Birla Sun Life Focused Equity Fund 7.49 8.73 16.90 12.01
Aditya Birla Sun Life Frontline Equity Fund 8.41 9.08 16.35 12.62

ABSLMF: Equity
ABSLMF Equity Funds are medium to high-risk funds invested in stocks and equities that offer investors
dynamic returns on their investments. The schemes are designed for long term capital appreciation and
are curated to meet investment needs based on individual risk appetite.
Scheme Name Risk 5 year Fund Objective

return
(%)
Aditya Birla Moderately 16.35 The scheme aims at achieving long term growth of capital
Sun Life high by maintaining a portfolio which is diversified across
Frontline Equity various industries in line with the benchmark index Nifty
Fund 50. The fund manager allocates 100% of the fund’s assets
in equity and equity related securities

Aditya Birla Moderately 16.34 The scheme attempts to generate capital appreciation in
Sun Life Equity high the long term and current income, by investing in equity,
Hybrid ’95 Fund fixed-income and money market securities. The fund is
involved in income generation and distribution of
dividends. Investors who are eager to take exposure in
equity with a hint of debt may consider investing in this.
Aditya Birla Moderately 21.55 It is an open-ended scheme which maintains a portfolio of

Sun Life Equity high diversified equity shares which invests across the large
Fund cap, mid cap, small cap stocks. The scheme aims to
achieve capital appreciation in the long term, allocating
90% of the fund’s assets in equity and equity-related
securities and the rest in money market securities.

Aditya Birla Moderately 21.81 Being an open-ended growth scheme, it generates capital
Sun Life high appreciation in the long run by investments in equity and
Advantage Fund equity related securities and maintaining a diversified
research-based approach. The basis of earning returns is
leveraging the dynamic business cycles via fundamental
research approaches.
Aditya Birla Moderately 16.90 Being an open-ended fund, the scheme aims to achieve
Sun Life high capital appreciation in the long term by investing in large-
Focused Equity cap equity shares of up to 30 companies. The scheme is
Fund suitable for investors who want to invest in equity and
equity-related securities in the form of a concentrated
portfolio.

HDFC Mutual Fund
Housing Development Finance Corporation Limited (HDFC) is an Indian financial services company
based in Mumbai, India. It is a major provider of finance for housing in India. It also has a presence in
banking, life and general insurance, asset management, venture capital, realty, education, deposits and
education loans.
(a) History
It was founded in 1977 as the first specialized Mortgage Company in India. HDFC was promoted by the
Industrial Credit and Investment Corporation of India (ICICI). Hasmukhbhai Parekh played a key role in
the foundation of this company. In 2000, HDFC Asset Management Company launched its mutual fund
schemes. In the same year, IRDA granted registration to HDFC Standard Life Insurance, as the first
private sector life insurance company in India. HDFC Mutual fund is a mutual fund Company, which has
been constituted as a trust in accordance with the provisions of the Indian Trusts Act, 1882.
The company has been registered with SEBI. Its corporate headquarter is
in Mumbai, India. HDFC Asset Management Company Ltd was incorporated under the Companies Act,
1956, on December 10, 1999, and is approved to act as an Asset Management Company for the HDFC
Mutual Fund by SEBI. HDFC Asset Management Company Limited was founded in December 1999 as a
joint venture between Housing Development Finance Corporation Limited (“HDFC”) and Standard Life
Investments Limited (“Standard Life Investments”). As on 31st March, 2017, the share of HDFC and
Standard Life Investment in the paid-up equity capital of the HDFC Asset Management Company
Limited was 59.99% and 39.99% respectively.
In 2003, HDFC Asset Management Company Limited acquired Zurich

Asset Management Company (India) Private Limited. Further, in December 2013, it acquired the
schemes of Morgan Stanley Mutual Fund.
Key Information
Mutual Fund HDFC Mutual Fund
Setup Date Jun-30-2000 Incorporation Date Dec-10-1999
Sponsor Housing Development Finance Corporation Ltd. / Standard

Life Investments Ltd.
Trustee HDFC Trustee Company Limited
Chairman N.A
CEO / MD Mr. Milind Barve
CIO Mr. Prashant Jain
Compliance Officer Mr. Yezdi Khariwala Investor
Service Officer Mr. John Mathew Assets Managed Rs. 382517.03
crore (Dec-31-2019)
(b) Types of HDFC Mutual Fund
• HDFC Credit Risk Debt Fund Direct Growth

• HDFC Retirement Savings Fund Hybrid Debt Plan Direct Growth
• HDFC Balanced Advantage Fund Direct Plan Growth

• HDFC Medium Term Debt Fund Direct Plan Growth
• HDFC Small Cap Fund Direct Growth
• HDFC Index Sensex Direct Plan Growth

• HDFC Dynamic PE Ratio Fund of Funds Direct Growth
• HDFC Multi Asset Fund Direct Growth

• HDFC Corporate Bond Fund Direct Plan Growth
• HDFC Short Term Debt Fund Direct Plan Growth
• HDFC Retirement Savings Fund Hybrid Equity Plan Direct Growth
• HDFC Gold Direct Plan Growth HDFC Equity Savings Direct Plan Growth
• HDFC Hybrid Equity Fund Direct Plan Growth
• HDFC Low Duration Fund Direct Plan Growth
Investment philosophy
Invest Profitably Research & Analysis Controlled Risk
The single most important factor that To realize this belief, HDFC Our strong emphasis on
drives HDFC Mutual Fund is its belief Mutual Fund has set up the managing and controlling
to give the investor the chance to infrastructure required to conduct portfolio risk avoids
profitably invest in the financial all the fundamental research and chasing the latest "fads"
market, without constantly worrying back it up with effective analysis. and trends
about the market swings.
Mutual funds bought and sold on January 2021
What mutual funds bought and sold in January 2021

Mutual funds have been net sellers on most days in Jan-21, except for the last few days when FPIs had
turned net sellers and domestic funds supported the markets ahead of the Union Budget.
Indian mutual funds have been on the defensive on most days when it comes to flows into equities. Just
steal a quick glance at the numbers to understand that! In the last few months, mutual funds have been

net sellers on more than 90% of the days even as foreign portfolio investors were buying. Check the chart
below on MF flows into equities on Jan-21.
L&T mutual fund
L&T Investment Management Limited is a Mutual Fund company in India. L&T Mutual Fund was
founded in 1996 by the parent company L&T Finance Holdings Limited (which is one of India's top
publicly-listed NBFC, i.e. non-banking financial companies).
L&T Mutual Fund has been living upto the fund house's vision of being one of the most trustworthy and
admired AMC's in India. During the last two decades, L and T Mutual Fund have demonstrated
consistent and strong track records. Its team of analysts and fund managers are extremely skilled and
trained in order to identify new investment opportunities and ideas with their extensive research and
robust systems and technological support.
The L&T Mutual Fund Company offers various solutions for the investment requirement for its investors
which range from equity funds to debt funds to hybrid funds and can vary from close-ended to open-
ended schemes. In fact, the various options are almost tailor made for the investors, in order to suit their
investment needs of wealth accumulation, capital protection and income generation or optimisation of
their wealth.
With its nationwide reach (with more than 55 branches across 375 cities across the country), it caters to
2.6 million investors across India and manages investments worth more than ₹71,000 crores
Fund name 3 year (%) 5 Year (%) NAV Fund Size (Cr)
5.94 12.53 35.8 8404.03

L&T india value fund
L&T Emerging Businesses Fund 5.94 12.43 22.72 6177.32
L&T Midcap Fund 8.26 12.69 134.88 4879.9

L&T Tax Advantage Fund 7.21 9.77 53.94 3420.69
L&T Infrastructure Fund 7.22 11.56 15.87 1934.44
L&T Debt Mutual Funds

Debt Mutual Funds are fixed income investment instruments that predominantly invest in highly rated debt
securities. These are apt for investors who want to earn quality returns on investments and don’t want to
take much risk. Here is a list of top performing Debt Mutual Funds offered by L&T:
Fund Name 3 Year (%) 5 Year (%) NAV Fund Size (Cr)
L&T Liquid Fund 7.04 7.53 2653.63 15516.24
L&T Short Term Bond Fund 7.74 8.42 19.22 4002.4
L&T Ultra Short Term Fund 7.69 8.22 32.37 3022.86
L&T Credit Risk Fund 5.51 7.64 21.49 3038.05
L&T Banking and PSU Debt Fund – – – 196.34
L&T Hybrid Mutual Funds

The investment portfolio of Hybrid Mutual Funds consists of a blend of equities and debt securities. Risk
exposure of the investment portfolio depends on its composition and inclination towards equities or debt.
If you’re an investor with medium risk appetite, you can consider investing in these funds. Here is a list of
popular Hybrid Funds offered by L&T:

Fund Name 3 Year (%) 5 Year (%) NAV Fund Size (Cr)
L&T Hybrid Equity Fund 7.25 10.65 27.78 9381.57
L&T Arbitrage Opportunities Fund 6.72 7.16 14.49 668.31
L&T Balanced Advantage Fund 5.81 7.05 24.14 546.9
L&T Equity Savings Fund 4.74 6.74 18.28 175.38
L&T Conservative Hybrid Fund 5.89 7.2 35.65 41.56

Chapter 4
Data analysis
Key stocks bought by mutual funds in Jan-21
The graph below represents the the stocks that were bought by mutual funds.
The mutual fund buy list on Jan-21 presented an interesting picture. The churn story appears to be to exit
the fully-priced stocks and get into sector-laggard stories. For example, Tech Mahindra and HCL Tech
have been relatively low-profile movers compared to big guns like TCS and Infosys. Similarly, Axis
Bank was a bank that had a very sceptical rally. Most of the attention was focused on frontline banks like
HDFC Bank, Kotak Bank and ICICI Bank. With Axis Bank getting its NPA act together, mutual funds
sensed an opportunity in the stock.
IRFC was more of an IPO demand story that led to heavy buying in the stock. Mutual Funds have been
looking for cash-rich state-owned companies with the potential to pay rich dividends. IRFC does fall into

that category. HDFC was another stock that is fancied for its SOTP valuations. The holding company
discount had overplayed giving MFs reason to accumulate HDFC.
Finally, there were two India stories in the buy list. While L&T represented the India investment story,
Asian Paints represented the India consumption story. Between the two stocks, mutual funds perhaps
hoped to catch the pulse of the robust India growth recovery that looks so likely in FY22.
Stocks that were sold in jan 2021 which were exceeding 10% cut off for investing on a particular security
The graph below represents the Trends in Mutual Funds.
The sell list of mutual funds is not too surprising for two reasons. Most large caps have rallied and are
trading close to their historic highs. Secondly, SEBI regulations do not permit any single fund to hold
more than 10% of their portfolio exposure in a single stock. With funds already overexposed to large cap
heavyweights, the 105% bull rally since March 2020 has compounded their holding problems.
When it comes to heavyweights like Reliance Industries, Infosys and TCS, there is not much of a surprise
element. Most of the mutual funds were close to their limits on these stocks and with the sharp rally in
these stocks, some profit booking was inevitable.

Bharti Airtel was a different ball game. Apart from the sharp rally, FPI limits on Bharti were increased
leading to heavy demand from FPIs. Mutual funds were using the pent-up demand for the stock to exit
profitably. The recent MSCI weight revision was supposed to result in heavy FPI buying in Bharti group
and mutual funds obviously made the best of the demand spurt in this stock.
In case of stocks like Power Grid, Bandhan Bank and KNR Construction, the immediate reason was the
perception among sell-side analysts that medium term positives were in the price. With uncertainties
pertaining to the power sector and microfinance, mutual funds were strategically using higher levels to
monetize positions.
Short survey
A short survey was conducted in order to determine the number of people aware of the mutual funds and
its schemes and also to find out how many people are interested in investing and the factors that influence
them in order to invest.
This survey wasn’t specifically conducted for mutual funds but rather to focus on general aspects of
Investment and where mutual funds fall in that category. In this way it would be easier to focus on a non
biased answer which favours the mutual fund schemes and also does not favour the mutual funds
schemes.
There were over 150 responses collected in total
The graph below represents the age group among the 50 participants
The graphs presented below also contain the respective questions of the survey.

a)AGE( the Graph below represents the Age of the respondents)
• The survey was conducted on over 150 Investors.

• Among Whom 88% percentage of the Respondents Belonged to the age group 28-35
• 8% of the Respondents belonged to the age group 35-45
• The remaining 4% were i=between the age group of 45-60
Sources(the Graph below represents the sources of the investors which played a
major role in determining the investor preference)

• 8.2% of the Respondents were influenced By brokers.

• 27.2% by Banks
• 36.1% by Friends and relatives
• 19.7% by by televisions and news papers
• 3.3% by social media
• 1.6% by mobile phones(ads)
• 1.6% worked for stock exchanges
• 1.6% by Google
b)The Graph below represents the types of investments the respondents

prefer/preferred
• There are various types of investements that are available to the investors.
• The above graph represents where the Mutual funds fall in those categories.
• Savings account ranks 1st with 49% of the respondents preferring it.
• Fixed deposits and Gold/silver/precious stones Rank 2nd. With 24% of the respondents preferring
it.

• Mutual Funds Rank 4Th with 22.4% of the respondents preferring it.
• Insurance Ranks 5Th with 18.4% of the respondents preferring it.
• Real estate and Shares/debentures rank 5th with 16.3% of the respondents preferring it.
• Public Provident fund and Post office Ranks 6th with 10.2% of the Respondents preferring it.
• Finally, Provident Fund gets the least of the attraction from the respondents ranking 7th with only
8% of the respondents preferring it.
Number of participants who have invested in mutual funds and also the respondents
who have not invested
• 68% of the Resondents never invested in Mutual Funds

• 32% of the respondents invested in Mutual Funds.

Mutual fund schemes the respondents preferred
Among the 32% of the respondents who had invested in Mutual Funds.
• 31.3% invested on open ended scheme
• 9.4% invested on close ended scheme.
• 3% invested on close liquid funds.
• 25% invested on Growth Funds,
• 6.1% invested on Long Cap funds.
• 3% invested on Mid Cap Funds
• 21.9% on Regular Income Funds
• 0% invested on Sector Funds.

Risk factors that influence Investing in mutual funds
Risk Factors play a Major role in Investing.

1. Liquidity 27.7%.
2. Low risk 51.1%.
3. High return 36.2%.
4. Company reputation 14.9%.
Almost half of the respondents preferred Low Risk over the other factors.

The below graph represents the Sectors of the mutual Funds the respondents
preferred.
Among the Respondents who invested in mutual funds, the sectors of the mutual funds are classified
based on their preferences.
• 11.4% of the respondents preferred general 1st

• 5.6% of the respondents preferred Oil and petroleum.
• 11.4%of the respondents preferred Gold Fund
• 22.9% of the respondents preferred Diversified equity Fund.
• 2.8% of the respondents preferred Power sector
• 5.6% of the respondents preferred Debt fund.
• 37.1% of the respondents preferred Banking Fund.
• 5.6% of the respondents preferred Real Estate Fund.

The graph below represents Reasons for not investing in mutual funds
• 30.8 % of the respondents didn’t invest on mutual Funds simple because they were not aware of
it.
• 35.9% of the respondents thought it had higher risk.
• 33.3% of the respondents didn’t really have a good reason.
• Only 2.6% of the respondents had invested.
• 2.6% of the respondents didn’t know why they didn’t invest.
The graph below represents the respondents, preference interms of the type of
investments.

• Private sector - 46.7%

• Public sector- 24.4%
• Government sector – 24.4%
• Foreign sector – 4.3%
• Saving objectives of the Respondents.
Each and every individual has some kind of a reason or a goal behind the investments they make.I listed
out some of the common reasons why an average individual would want to invest.
• Although there are various reasons prevail. Long term growth catches the most of the common
people’s eyes when it comes to investment.
• In the survey conducted, it shows that 28% of the respondents had a goal of Long term Growth.
• 24% of the respondents went for Growth Income
• 6% of the respondents had Children’s as their motto.
• 10% of the respondents invested for a safe retirement.
• 10% of the respondents invested for income and capital preservation.
• 18% of the respondents invested for Home Purchase.
• And 6% for health care.

The below graph represents if the respondents had a Budget plan or not.
• yes and maybe had equal response as their ratio is 1:1. i.e, both had 36% of the votes.
• 28% of the respondents didn’t really have a Structured budget Plan.
The Below graph represents if the respondents had Financial advisors or not
• 70% of the respondents sometimes had some sort of financial advisors.

• 8% of the respondents never had financial advisor at all.

• 22% of the respondents always consulted a financial advisor.
The graph below shows the Income investment relationship
• 60% of the respondents invested around 0-15% of their total income.

• 34% of the respondents invested around 15-30% of their Total income.
• 5.9% of the respondents invested around 30-50% of their total income.
• 2% of the respondents didn’t know how much to invest.
Period of investment

• 14.9% of the respondents wanted to invest for more than 5 years.

• 44.7% of the respondents wanted to invest for a time period between 1-5 years.
• 40.4% of the respondents wanted to invest for a time period within one year.

Chapter 5
Findings and conclusions.
• Survey was conducted on over 150 Investors. Of all those Investors 88% of them were in the age
between 28-35.
• About 8% of them were 35-45 years old and the remaining were above 45
• Although there were many options for investment available, most of the people preferred fixed deposits.
• Mutual funds ranked Fourth in terms of investment preference among
The 10 investment options presented Above.
• About 36% of the participants got help/advice from their friends/relatives before investing.
• Banks and newspapers also played a major role in educating the people about various investment options.
• Only 32% of the people had invested in mutual funds and the remaining 68% of them did not.
• The top two schemes of 32% of the participants who had invested in the mutual funds preferred open
ended schemes and Growth funds.
• Participants preferred low risk and high returns. which cannot be true in reality because High returns are
generated from the options which have high risk.
• OF all the sectors of mutual funds Banking , Gold funds, real estate funds and the general 1st were the
most preferred ones. Among these, Banking tops the table.
• The participants did not invest in the mutual funds Because they think it has higher risks. Some were
even not aware of the mutual funds. and some of them didn't really have a good reason.
• Almost 1/4th of the participants preferred Long term growth and capital preservation as their Goals on
investing on mutual funds>
• people Who had a budget plan versus the people thought they had or not sure if they do are in the ratio of
1:1
• Short term and medium term investment had a lot of attention over the long term Investment.

Conclusion
• Although Mutual funds are getting a lot of attention from people each and every day
• it is still not reaching most of the youngsters today
• It is essential for these youngsters to get educated about mutual funds and its risks in order to make a
wise investment choice
• It is going to be fixed deposits which will remain standardly preferred by most of the people when it
comes to investment at least for a few more years.
• People seem to prefer low risk and high returns which cannot be true in reality.
• In the study, most of the participants wanted to invest for retirement purposes and for wealth
maximization. But when it came to investment choice almost all of them chose
Short term (which is <1 year) investment and medium term (<5 years) investment.
• There are a lot of factors which determine an investment option. But very few are skilled in toggling
between those options.


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A STUDY ON MUTUAL FUNDS

INDIAN ACADEMY DEGREE COLLEGE AUTONOMOUS Page 1

Concept of Mutual Fund:

History of mutual funds

First Phase - 1964-1987

INDIAN ACADEMY DEGREE COLLEGE AUTONOMOUS Page 2

Second Phase - 1987-1993

(Entry of Public Sector Funds)

Third Phase - 1993-2003 (Entry of Private Sector Funds)

INDIAN ACADEMY DEGREE COLLEGE AUTONOMOUS Page 3

Fourth Phase - since February 2003

INDIAN ACADEMY DEGREE COLLEGE AUTONOMOUS Page 4

INDIAN ACADEMY DEGREE COLLEGE AUTONOMOUS Page 5

Advantages of mutual funds

INDIAN ACADEMY DEGREE COLLEGE AUTONOMOUS Page 6

Less cost for bulk transactions

Invest in smaller denominations

Suit your financial goals

INDIAN ACADEMY DEGREE COLLEGE AUTONOMOUS Page 7

Quick & painless process

INDIAN ACADEMY DEGREE COLLEGE AUTONOMOUS Page 8

Systematic or one-time investment

Disadvantages of mutual funds

Costs to manage the mutual fund

INDIAN ACADEMY DEGREE COLLEGE AUTONOMOUS Page 9

Types of Mutual Funds

INDIAN ACADEMY DEGREE COLLEGE AUTONOMOUS Page 10

Schemes Based on Maturity Period of

Open Ended Funds Close Ended Funds Interval Funds

Types of Mutual Funds in India

Close Ended Scheme

INDIAN ACADEMY DEGREE COLLEGE AUTONOMOUS Page 11

Based on Principal Investments

Equity Schemes Debt Schemes Hybrid Schemes

INDIAN ACADEMY DEGREE COLLEGE AUTONOMOUS Page 12

Large Cap: Top 100 companies in terms of market capitalization

INDIAN ACADEMY DEGREE COLLEGE AUTONOMOUS Page 13

Equity funds classification according to market cap mix

Equity funds classification according to investing styles

INDIAN ACADEMY DEGREE COLLEGE AUTONOMOUS Page 14

INDIAN ACADEMY DEGREE COLLEGE AUTONOMOUS Page 16

INDIAN ACADEMY DEGREE COLLEGE AUTONOMOUS Page 17

INDIAN ACADEMY DEGREE COLLEGE AUTONOMOUS Page 18

INDIAN ACADEMY DEGREE COLLEGE AUTONOMOUS Page 19

INDIAN ACADEMY DEGREE COLLEGE AUTONOMOUS Page 20

Solution Oriented Schemes

Role of SEBI in mutual funds

Role of SEBI in Mutual Fund Regulations

INDIAN ACADEMY DEGREE COLLEGE AUTONOMOUS Page 21

c. Diversify your portfolios

INDIAN ACADEMY DEGREE COLLEGE AUTONOMOUS Page 22

d. Avoid the clutter of portfolios

e. Assign a time dimension to the investment schemes

The Association of Mutual Funds in India (AMFI)

AN OVERVIEW OF AMFI - PRESENT SCENARIO

OBJECTIVES OF ASSOCIATION OF MUTUAL FUNDS IN INDIA

To ensure the ethical standard of mutual fund operations in India

Protection of interest of investors

INDIAN ACADEMY DEGREE COLLEGE AUTONOMOUS Page 24

ROLE OF ASSOCIATION OF MUTUAL FUNDS (AMFI) IN INDIA

The minimum age for obtaining ARN is 18 years

INDIAN ACADEMY DEGREE COLLEGE AUTONOMOUS Page 25