MUTUAL FUNDS

WHAT IS A MUTUAL FUND?

An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets.

HISTORY OF MUTUAL FUNDS IN INDIA

Unit Trust of India was the first mutual fund set up in India in the year 1963. In the year 1992, Securities and exchange Board of India (SEBI) Act was passed. SEBI notified regulations for the mutual funds in 1993. The regulations were fully revised in 1996 and have been amended thereafter from time to time. All mutual funds whether promoted by public sector or private sector entities including those promoted by foreign entities are governed by the same set of Regulations.

ORGANISATION OF MUTUAL FUNDS IN INDIA

ASSET MANAGEMENT COMPANY?

ASSOCIATION OF MUTUAL FUNDS IN INDIA (AMFI)

The Association of Mutual Funds in India (AMFI) is dedi cated to developing the Indian Mutual Fund Industry on professional, healthy and ethical lines and to enhance a nd maintain standards in all are a with a view to protecting and promoting the interests of mutual funds and their unit holders.

WORKING OF MUTUAL FUNDS

Existing schemes in mutual fund category

BY STRUCTURE 1.) OPEN ENDED SCHEME 2.) CLOSE ENDED SCHEME 3.) INTERVAL SCHEME

BY NATURE1.) EQUITY FUNDS 2.) DEBT FUNDS a.) GILT FUNDS b.) INCOME FUNDS c.) MIPS d.) SHORT TERM PLANS e.) LIQUID FUNDS 3.) BALANCED FUNDS

 BY INVESTEMENT OBJECTIVE 1.) GROWTH SCHEME 2.) INCOME SCHEME 3.) BALANCED SCHEME 4.) MONEY MARKET SCHEME OTHER SCHEMES 1.) TAX SAVING SCHEME 2.) INDEX SCHEMES 3.) SECTOR SPECIFIC SCHEMES

WHAT IS Net Asset Value ? HOW IS NAV CALCULATED? WHAT IS EXPENSE RATIO?

PRINCIPLE INVESTMENTS
MONEY MARKET FUNDS BOND FUNDS STOCK OR EQUITY FUNDS HYBRID FUNDS

ADVANTAGES OF INVESTING IN MUTUAL FUNDS

PROFFESSIONAL MANAGEMENT DIVRSIFICATIONS ECONOMIES OF SCALE LIQUIDITY SIMPLICITY

DISADVANTAGES OF INVESTING IN MUTUAL FUNDS

PROFFESSIONAL MANAGEMENT COSTS DILUTION TAX

WHY INVEST IN MUTUAL FUNDS?

PROFFESSIONAL MANAGEMENT DIVERSIFICATION LIQUIDITY AFFORDABILITY CONVINIENCE FLEXIBILITY & VARIETY

Tax benefits on Investment in Mutual Funds

100% Income Tax exemption on all Mutual Fund dividends EQUITY FUNDS DEBT FUNDS OPEN END FUNDS

Current scenario of Mutual funds Industry

Impact of the Global Financial Crisis

Deepening of the global financial crisis during September 2008. Although the mutual funds promised immediate redemption, their assets were relatively illiquid. During Apr-Sep 08, net mobilization of funds by mutual funds declined sharply by 97.7% to Rs 24.8 bn During the same period, liquid and debt schemes which contribute more than 65% to the total AUM witnessed a decline of 19% in AUM. The key measures announced by the RBI.

SOME UPDATES ON MUTUAL FUNDS

AMFI gets new chairman

Association of Mutual Funds in India (AMFI) has

got its new chairman. The new chairman at the AMFI is Milind Barve.

Sundeep Sikka, CEO, Reliance Capital Asset Management Company, has now been appointed as vice chairman of AMFI.

Mutual Funds giving rich returns

09/22/2010

It has been found out from a recently done survey that close to 60% of the mutual funds have over-performed their bench mark index in the past 32 months. While the market was going via a bad run, only 3.5% of the equity diversified fund outperformed.

PRESENTED BY :

TANIMA BANSAL ROLL NO. 06 GINELLE GOMES ROLL NO. 16 SURBHI GUPTA ROLL NO. 17 SHIVAKSHI MALIK ROLL NO. 29 BHAGYASHREE MORE ROLL NO. 36

THANK YOU