An Overview

of

MUTUAL FUND

BY: ALTAF AHMAD

Flow
 What is Mutual Fund
 Evolution of Mutual Fund-Indian
Perspective
 Types of Mutual Fund
 NAV
 Advantages
Mutual Fund

A Mutual Fund is a trust that pools the

savings of a number of investors who
share a common financial goal.
Evolution
 1963- Unit Trust of India

 1964-87- First Phase

 1987-1993 – Second Phase

 1993-2003 – Third Phase

 Since February 2003

1963-87
 Unit Trust of India formation by R.B.I
in 1963

 1978-IDBI takes over functionalities

from R.B.I

 1988- Assets Under Management

(AUM) Rs.6,700 cr.
1987-1993 – Second Phase
 1987-Marked entry of Public Sector Banks.
LIC and GIC

 June 87-S.B.I was first Non-Unit Trust of

India institution to set-up the Mutual Fund

 1989-LIC Entered the Mutual Fund Space

 1990- GIC Entered the Mutual Fund

Markets
1993-2003 – Third Phase
 1993-Entry of Private Players
SEBI Laid Guidelines for all
players except Unit Trust of India
 1996- SEBI(Mutual Fund) Regulations
passed
 2003- 33 Mutual Fund Players were in the
Indian Market

 2003- AUM 1,21,805 cr.

2003-Onwards
 Unit Trust of India Bi-fircated into two
entities

 UTI-Mutual Fund, sponsored by SBI, PNB,

BOB and LIC

 UTI-Mutual Fund governed by SEBI

Regulations 1996

 Unit Trust of India only covers US-64

2003-Onwards
 Consolidation of the Mutual Fund
Houses Begins
 Types of Mutual Fund
 Open Ended Fund

 Closed Ended Fund

Open Ended-Mutual Fund
 Issue and redeem shares on a
continuous basis, and grow or shrink
in response to investor demand for
their shares.
Close Ended-Mutual Fund
 Closed-end mutual funds are actively
managed funds that raise capital only
once, by issuing a fixed number of
shares.
Net Asset Value (NAV)
 NAV is defined as the value of each
share of mutual fund and it is usually
expressed as per-share amount. Net
Asset Value is calculated on a daily
basis after the trading closes.
Advantages
 Professionally Managed

 Easy access to Liquidity

 Numerous Option of Investments

 Low Risk-Highly Diversified Portfolio

 Tax Benefits
Thank You
Thank
 U