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Prudential Icici Mutual Fund
Prudential Icici Mutual Fund
Prudential Icici Mutual Fund
Definition:
A MF is a pool of money, collected from investors ,& is invested according to certain Investment Options
Characteristics of a MF :
1) Ownership of MF belongs to investors 2) MF is managed by investment professionals who earn a fee for their services from the fund 3) Pool of funds is invested in a portfolio of marketable investments. Value of portfolio is updated every day
Lack
Lack
Structure of MFs
Governed by SEBI (Mutual Fund) Regulations, 1996 Mandatory for MFs to have a three tier structure
Sponsor
Trustee
Sponsor: Promoter of the MF, appoints the Trustees Trustees:Responsible to the Investors in the MF,appoints AMC AMC : Business face of MF, manages affairs of MF
Trustee*A
A: Custodian/Depository
buy /sell units of fund,at NAV related prices,at any time directly from the fund. Rs. 10 ,in the initial offer period. After a pre-specified period, say 30 days,the fund is declared opened for further sales & repurchases
further sales are closed. Any further transaction happens in the secondary market where closed end funds are listed
Pool of Funds technically constant
Reward
Equity Funds
Funds
Risk
Investment objective
Reward
Each fund : Stated Investment Objective Income / Growth Markets(s)
Emerging
Investment Abroad exposure to overseas markets - appeals to both sophisticated and unsophisticated investors Retirement Income Invest while employed - take income in retirement / use capital as safety net.
Achievement of long-term goals Housing Education Investment for children Parents / Grandparents set up investment account on behalf of children / grandchildren. Unit-Linked Life Assurance Products.
Authorisation process
Submit : Trust deed (Unit Trust) Instrument of Incorporation (Investment Company) Prospectus (or equivalent) Marketing Plan Evidence of financial standing Submission Fee Formal request
Regulatory Authority
Securities Exchange Board of India
Offer Document
MFs are required to file with a SEBI the Offer Document/Prospectus, in a prescribed format that provides all information about the fund & the scheme
Legal Document in language of country Purpose Provide Investors with key information needed to make informed decisions
length of initial offer period what will happen if launch targets not reached.
Constitution of the fund,details of sponsor, trustee & AMC Standard & Specific risk factors Scheme attributes -Investment objective,pattern,terms with
regards to liquidity Details of the scheme being offered Loads, fee structures & expenses Unit holder rights
MFs to summarize the key points in a summary document called as the Key Information Memorandum (KIM) It is mandatory that the KIM is made available to all investors alongwith the application forms