VAIBHAV SHARMA ROLL NO-26

A Mutual fund is a common pool of money in to which investors with common investment objective place their contributions that are to be invested in accordance with the stated investment objective of the scheme. The investment manager would invest the money collected from the investor in to assets that are defined/ permitted by the stated objective of the scheme.

History of mutual funds in India 7000

6000

First to launch Open-ended funds

April 92 Peak driven bull market

Morgan Stanley

Private Sector Birla / Alliance

1994-95

5000

Sep 94 FII driven peak

1993-94

Bear Hug

4000

3000

Private Sector

1992-93 First

d Tax Breaks

Public Sector Mutual Funds 2000

1987-88

1000

May 92 Market crashes after the Scam and 15 days brokers Strike. July 91 Dr. Manmohan Singh liberalizes capital market by abolishing Controller of Capital Issues IPO Market
1993 1994

1999

During the Bear Phase First open-ended Debt fund launched

Phases in the market

0

Equity
1995

Fixed Deposits
1996 1997 1998

Mutual Funds ?
1999 2000

1990

1991

1992

 Sponsor Trustee Asset

management company Custodian

MUTUAL FUNDS
MATURITY INVESTMENT OTHER FUNDS/ SCHEMES

INVEST MENT
CLOSED ENDED

OPEN ENDED MATURITY

GROWTH/EQUITY

INCOME/DEBT

BALANCE FUNDS

MONEY MARKET OR LIQUID FUND

GILT FUND

INDEX FUND

 Tax

Saving funds Sector Specific funds Performance funds

 The

Indian Mutual fund industry has witnessed considerable growth since its inception in 1963. The assets under management (AUM) have surged to Rs 4,173 bn in Mar-09 from just Rs 250 mn in Mar-65. In a span of 10 years (from 1999 to 2009), the industry has registered a CAGR of 22.3%, albeit encompassing some shortfalls in AUM due to business cycles.

 The

impressive growth in the Indian Mutual fund industry in recent years can largely be attributed to various factors such as: Rising household savings, comprehensive regulatory framework, favourable tax policies, introduction of several new products, investor education campaign and role of distributors.

 With

a strong growth in the AUM of domestic Mutual fund industry, the ratio of AUM to GDP increased gradually from 4.7% in 2001 to 8.5% in 2009. The share of mutual funds in households financial savings also witnessed a substantial increase to 7.7% in 2008 as against 1.3% in 2001.

MARKET RISK LIQUIDITY RISK CREDIT RISK INTEREST RATE RISK INVESTMENT RISK

Alliance Capital Mutual Fund Birla Mutual Fund Cholamandalam Mutual Fund Fidelity Equity Fund HDFC Mutual Funds ING Saving trust RELIANCE Capital SBI Mutual

SCHEME 1. RELIANCE GROWTH FUND

APPLICATION AMOUNT- Rs. 5500 ASSET ALLOCATION EQUITY 80-100 RISK high DEBT 0 - 20 RISK low

SCHEME 2. HDFC GROWTH SCHEME.

APP LICATION AMOUNT Rs. 5000 ASSET ALLOCATION EQUITY 65-100 RISK high DEBT UPTO 35 RISK medium

EXPENSES - 2.32%

EXPENSES - 1.80%

Mutual fund shall be established under the Indian Trust Act and be authorized for business by the SEBI. The AMC should have minimum net worth of Rs.5 crores at all times. SEBI is given the power to withdraw the authorization given to any AMC. At least 50% of the Board of AMC must be independent directors who have no connections with the sponsoring organization.

Investors' personal details Adviser's name: Bank details Current cost and value PAN details