MUTUAL

FUNDS

SAMRITI GOEL
MBA LECTURER
 Contents Of
Presentation
 What are mutual funds
 History of mutual funds
 Types of mutual funds
 Advantages of mutual funds
 Disadvantages of mutual funds
 Future of mutual funds
MEANING OF MUTUAL
FUNDS
 A Mutual Fund is a financial service that
receives money from public and invests it
in stock market and give return to the
investor on the behalf of their risk.In breif
we can say that mutual funds is a process
to invest the money in stock market
indirectly.The service provider company of
mutual funds invest money in stock
market by the advice of their fund
manager.
HISTORY OF MUTUAL
FUNDS
It is divided into FIVE phases

1) 1963-1987

the UTI was solo player
 created by parliament act in 1963

first product was unit scheme
 managed assets of Rs.6700 crore
1) 1987-1993
 SBI entered in this segment
 By the end total asset of UTI were Rs.38247
crore and that of SBI were Rs.8750 crore
3. 1993-1996
 Mutual fund industry was open for both
foreign and private sector.
 SEBI’s first set of regulations was set in 1993
and revised in 1996.
3. 1996-1999
 the implementation of SEBI’s new
regulations.
 Bank mutual funds were recast according
SEBI recommended structure.
3. 1999-2007
 Very rapid growth in the industry
 Many private players came in the market
 Almost 36 AMCs with over 500k cr AUM.
TYPES OF MUTUAL
FUNDS
Mutual funds offer further general choices to the investors in terms of
1) According to the scheme of operation

 Open ended -These are funds that you

can buy and sell anytime throughout the
year.

 Close ended -These are funds that are

open only for a specific period after which
you’d have to buy them from the secondary
market. For e.g. NFO’s.
2) According to location
 Domestic funds -These are the
funds which mobilise savings of people
within the country where investments
are made.
 Off-shore funds - Off-shore mutual
funds are those which raise or
mobilise funds in countries other than
where investments are to be
made.These funds attract foreign
savings for investment in India.
ADVANTAGES
 Portfolio diversification
 Professional management
 Reduced risk
 Liquidity
 Tax benefit
 Choice of schemes
 Higher returns
DISADVANTAGES
 Liquidity crisis
 Lack of innovation

 Conventional pattern of investment

 No guarantee

 Poor risk management

FUTURE OF MUTUAL FUNDS
IN INDIA
 By June 2007, Indian mutual fund industry reached Rs
1,50,537 crore ,and it is estimated to reach Rs
40,90,000 crore by Dec 2015.Present AUM is over
Rs.500k crore.

• We have approximately 36 mutual funds which is

much less than US having more than 800. There is a
big scope for expansion.
• 100% growth in the last 6 years.

• Number of foreign AMC's are in the que to enter the

Indian markets.
MAJOR MARKET
PLAYERS
 UTI MUTUAL FUNDS
 PRUDENTIAL ICICI MUTUAL FUNDS
 RELIANCE MUTUAL FUNDS
 HDFC MUTUAL FUNDS
 FRANKLIN TEMPLETON MUTUAL FUNDS
 BIRLA SUN LIFE MUTUAL FUNDS
 SBI MUTUAL FUNDS
 KOTAK MAHINDRA MUTUAL FUNDS
 TATA MUTUAL FUNDS
 HSBC MUTUAL FUNDS
.

THANK YOU