Synopsis on

MUTUAL FUND

Submitted By:

Sanjay Kumar 102045500196

Study Centre:

PTU Learning Centre Goodwill Complex, Ldh

Project Guide:
Mr. Parveen Kumar

Submitted To:
PUNJAB TECHNICAL UNIVERSITY JALANDHAR

Mutual fund Contents

1. Introduction 2. Objective 3. Advantages 4. Disadvantages 5. Mutual Fund In India 6. Types 7. Fund Performance 8. Mutual Fund Fees 9. SEBI Regulations

Pages
(1) (2) (3) (4) (5) (6) (7-8) (9) (10)

Introduction
The first mutual funds were established in Europe. One researcher credits a Dutch merchant with creating the first mutual fund in 1774.[5] The first mutual fund outside the Netherlands was the Foreign & Colonial Government Trust, which was established in London in 1868. It is now the Foreign & Colonial Investment Trust and trades on the London stock exchange.[6] Mutual funds were introduced into the United States in the 1890s.[7] They became popular during the 1920s. These early funds were generally of the closed-end type with a fixed number of shares which often traded at prices above the value of the portfolio.[8] The first open-end mutual fund with redeemable shares was established on March 21, 1924. This fund, the Massachusetts Investors Trust, is now part of the MFS family of funds. However, closed-end funds remained more popular than open-end funds throughout the 1920s. By 1929, open-end funds accounted for only 5% of the industry's $27 billion in total assets. When confidence in the stock market returned in the 1950s, the mutual fund industry began to grow again. By 1970, there were approximately 360 funds with $48 billion in assets.[10] The introduction of money market funds in the high interest rate environment of the late 1970s boosted industry growth dramatically. The first retail index fund, First Index Investment Trust, was formed in 1976 by The Vanguard Group, headed by John Bogle; it is now called the Vanguard 500 Index Fund and is one of the world's largest mutual funds, with more than $100 billion in assets as of January 31, 2011

At the end of 2010, there were 7,581 mutual funds in the United States with combined assets of $11.8 trillion, according to the Investment Company Institute (ICI), a national trade association of investment companies in the United States. The ICI reports that worldwide mutual fund assets were $24.7 trillion on the same date.

1.

Objective 1. To Study The Income Funds 2. To Study The Growth Funds 3. To Study The Specialised Funds 4. To Study The Leverage Funds 5. To Study The Taxation Funds

2.

Advantages
Mutual funds have advantages compared to direct investing in individual securities These include: 1.Increased diversification 2.Daily liquidity 3.Professional investment management 4.Ability to participate in investments that may be available only to larger investors 5.Service and convenience 6.Government oversight 7.Ease of comparison

3.

Disadvantages
Mutual funds have disadvantages as well, which include 1.Fees 2.Less control over timing of recognition of gains 3.Less predictable income 4.No opportunity to customize

4.

Mutual funds are an under tapped market in India

Despite being available in the market for over two decades now with assets under management equaling Rs 7,81,71,152 Lakhs (as of 28 February 2010) (Source: Association of Mutual Funds, India), 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. This report is based on a survey of approximately 10,000 respondents in 15 Indian cities and towns as of March 2010. There are 43 Mutual Funds recently.

SEBI TRUSTEE OPERATIONS AMC FUND MANAGER MKT. / SALES MKT. / SALES SPONSOR

MUTUAL FUND SCHEMES INVESTOR DISTRIBUTOR

5.

Types
There are three basic types of registered investment companies defined in the Investment Company Act of 1940: open-end funds, unit investment trusts, and closedend funds. Exchange-traded funds are open-end funds or unit investment trusts that trade on an exchange. 1.Open-end funds 2.Closed-end funds 3.Money market funds 4.Bond funds 5.Stock or equity funds

6.

Funds Performance
Funds ranked according to returns (highest) (Last updated April 26, 2012)
Funds Performance (1 week) Funds Performance (1 month)

Fund Name UTI MASTER INDEX FUND- GROWTH ING GLOBAL REAL ESTATE FUNDGROWTH JPMORGAN JF ASEAN EQUITY OFF SHORE FUND- GROWTH DSP BLACKROCK WORLD ENERGY FUNDGROWTH ING GLOBAL COMMODITIES FUNDGROWTH Funds Performance (3 months)

% 4.45

Fund Name ICICI PRUDENTIAL FMCG FUND- GROWTH

% 9.77

3.14

UTI TRANSPORTATION AND LOGISTIC FUND- GROWTH MAGNUM SECTOR FUNDS UMBRELLA- EMERGING BUSINESS FUND- GROWTH RELIANCE PHARMA FUND- GROWTH

7.26

1.92

7.01

1.88

6.98

1.73

MAGNUM SECTOR FUND UMBRELLA-PHARMA- GROWTH

6.78

Funds Performance (6 months)

Fund Name ICICI PRUDENTIAL FMCG FUNDGROWTH UTI TRANSPORTATION AND LOGISTIC FUND- GROWTH HSBC MIDCAP EQUITY FUND- GROWTH EDELWEISS EQUITY ENHANCER FUND PLAN C- GROWTH IDFC STERLING EQUITY FUND- GROWTH

% 18.79

Fund Name ICICI PRUDENTIAL FMCG FUND- GROWTH

% 18.08

17.69

JPMORGAN EMERGING EUROPE MIDDLE EAST AND AFRICA 16.85 EQUITY OFF SHORE FUND- GROWTH HSBC EMERGING MARKETS FUND- GROWTH 14.84

14.73

14.33

ING GLOBAL REAL ESTATE FUND- GROWTH

14.38

14.28

BSL INTERNATIONAL EQUITY FUND PLAN A- GROWTH

14.34

7.

Funds Performance (1 year)

Funds Performance (3 years annualised)

Fund Name ICICI PRUDENTIAL FMCG FUNDGROWTH KOTAK GOLD FUND- GROWTH RELIANCE GOLD SAVINGS FUNDGROWTH ING GLOBAL REAL ESTATE FUNDGROWTH PRINCIPAL NEAR TERM FUND CONSERVATIVE PLAN- GROWTH Funds Performance (5 years annualised)

% 33.32

Fund Name RELIANCE PHARMA FUND- GROWTH

%* 41.75

28.16

ICICI PRUDENTIAL FMCG FUND- GROWTH

40.07

27.56

DSP BLACKROCK MICRO CAP FUND- GROWTH

39.01

16.68

ICICI PRUDENTIAL TECHNOLOGY FUND- GROWTH

36.1

16.15

ICICI PRUDENTIAL DISCOVERY FUND- GROWTH

34.4

Funds Performance (10 years annualised)

Fund Name RELIANCE PHARMA FUND- GROWTH

%* 22.21

Fund Name RELIANCE GROWTH FUND- GROWTH

%* 32.24

RELIANCE BANKING FUND- GROWTH RELIANCE BANKING FUND GROWTH PLAN- BONUS IDFC PREMIER EQUITY FUND PLAN AGROWTH ICICI PRUDENTIAL FMCG FUNDGROWTH

18.8

HDFC TOP 200 FUND- GROWTH

28.23

18.8

RELIANCE VISION FUND- GROWTH

27.96

18.27

HDFC EQUITY FUND- GROWTH

27.82

18.14

HDFC TAXSAVER- GROWTH

27.37

8.

Mutual Fund Fees and Expenses:

In the fee table, under the heading of "Shareholder Fees," you will find: Sales Loads (including Sales Charge (Load) on Purchases and Deferred Sales Charge (Load)) Redemption Fee Exchange Fee Account Fee Purchase Fee (Although the fee table in Form N-1A does not specifically include "purchase fees," if a fund imposes one, it would be included in the fee table under this heading. In the fee table, under the heading of "Annual Fund Operating Expenses," you will find: Management Fees Distribution [and/or Service] (12b-1) Fees Other Expenses Total Annual Fund Operating Expenses

9.

Securities and Exchange Board of India (Mutual Funds) Regulations 1996

Date 30-Aug2011 Details Securities and Exchange Board Of India (Mutual Funds) (Amendment) Regulations, 2011

Securities and Exchange Board Of India (Mutual Funds) (Amendment) 29-Jul-2010 Regulations, 2010 Securities and Exchange Board of India (Mutual Funds) (Second Amendment) 05-Jun-2009 Regulations, 2009 Securities and Exchange Board of India (Mutual Funds) (Amendment) 08-Apr-2009 Regulations, 2009 Securities and Exchange Board of India (Mutual Funds) (Third Amendment) 29-Sep-2008 Regulations, 2008 22-May2008 Securities and Exchange Board of India (Mutual Funds) (Second Amendment) Regulations, 2008

Securities and Exchange Board of India (Mutual Funds) (Amendment) 16-Apr-2008 Regulations, 2008 Notification under sub-regulation (1) of regulation 2 of the Securities and Exchange Board of India (Mutual Funds) (Second Amendment) Regulations, 2007 08-Apr-2008 and regulation 2 of the Securities and Exchange Board of India (Foreign Institutional Investors) (Second Amendment) Regulations, 2007 31-Mar-2008 SEBI (Payment of Fees) (Amendment) Regulations, 2008 Securities And Exchange Board Of India (Mutual Funds) (Second Amendment) 31-Oct-2007 Regulations, 2007 29-May2007 03-Aug2006 09-Dec-1996 Securities And Exchange Board Of India (Mutual Funds) (Amendment) Regulations, 2007 Securities And Exchange Board Of India (Mutual Funds) (Third Amendment) Regulations, 2006 Securities And Exchange Board Of India (Mutual Funds) Regulations, 1996 -(as amended upto June 29, 2010")

10.