Financial markets -: Financial markets refer broadly to

any marketplace where the trading of securities occurs,

including the stock market, bond market, forex market, and
derivatives market, among others. Financial markets are vital
to the smooth operation of capitalist economies.
Capital Market -: Capital market is a market for
financial investments that are direct or indirect claims to
capital. It is a market where savings and investments
channel between suppliers and investors. Capital
markets are combination of primary and secondary
markets.
Money market -: The money market refers to trading in very short-term
debt investments. At the wholesale level, it involves large-volume trades
between institutions and traders. At the retail level, it includes money market
mutual funds bought by individual investors and money market accounts
opened by bank customers.

Mutual Funds is a part of Money Market-

These instruments include cash, cash equivalent securities, and high-credit-

rating, debt-based securities with a short-term maturity (such as U.S.
Treasuries). Money market funds are intended to offer investors high liquidity
with a very low level of risk. Money market funds are also called money market
mutual funds.
Introduction of Mutual Funds
• Mutual Funds-: A mutual fund is a pool of money managed by a
professional Fund Manager. It is a trust that collects money from a
number of investors who share a common investment objective and
invests the same in equities, bonds, money market instruments
and/or other securities. And the income gains generated from this
collective investment is distributed proportionately amongst the
investors
Types of mutual funds-:

• Mutual Funds based on Structure –:

• Open ended Mutual Funds
• Close ended Mutual funds
• Interval Mutual Funds

Mutual Funds based on Asset Class-:

Eqity Funds
Debt Funds
Money Market Funds
Hybrid or balanced Funds
• Mutual Funds based on Investment Objective-:
• Growth Funds
• Income Funds
• Liquid Funds
• Tax Saving Funds
• Capital Protection Funds
• Fixed Maturity Funds
• Pension Funds
Mutual Funds based on Specialty
Sector funds
Index Funds
Fund of Funds
Emerging Market Funds
International Funds
Global Funds
Real estate Funds
Commodity focused stock Funds
Market neutral Funds
Inverse Funds
Asset allocation Funds
Gilt Funds
Exchange Traded Funds
History of Mutual Funds
History of Mutual Funds
• Mutual Funds history in India started in the year 1963 with the formation of Unit
Trust of India(UTI). This was initiated by Government of India with the help of
Reserve Bank Of India(RBI). The first-ever mutual fund scheme in India was
launched in 1964 by UTI called the Unit Scheme 1964. Mutual Funds history in
India can be broadly categorised into a number of distinct phases.
• Mutual Funds History: Initiation Phase (1963-1987).
• Mutual Funds History: Public Sector Phase ( 1987-1993).
• Mutual Funds History: Private Sector Phase (1993-1996).
• Mutual Funds History: AMFI, SEBI (1996 - 2003).
• Present Condition of Consolidation and Growth (2004-Today).
Advantages of Mutual Funds-:
Higher Returns
Diversification
High Liquidity
Professional portfolio Management
Cost Efficient
Perfect for various risk profile
Tax benefit
Highly Convenient
Pocket Friendly
Highly safe

Disadvantages of Mutual Funds-:

High Cost
Misuse of authority management
Comk - in period
Exit Load
Over - Diversification