Basic information about Mutual funds

1. Presentation on
ROLE OF MUTUAL FUND SCHEMES IN
INDIAN FINANCIAL SYSTEM
Presented by
P.MOUNIKA
R.MOUNIKA

2. INVESTMENT SOURCES :
 SAVINGS ACCOUNT
 POST OFFICE SCHEMES
 COMPANY FIXED DEPOSITS
 STOCK MARKETS
 MUTUAL FUNDS
 FIXED DEPOSITS
 TAX FREE BONDS

3. WHAT IS MUTUAL FUND?
• A Mutual Fund is a trust that pools together the
savings of a number of investors who share a
common financial goal.
The money thus collected is then invested in
capital market instruments such as shares,
debentures and other securities.

4. History of the Indian Mutual
Fund Industry
 First Phase-1964-87 Established Unit
Trust Of INDIA
 Second Phase-1987-93 Entry of public
sector funds
 Third Phase-1993-2003 Entry of private
sector funds
 Fourth Phase-since February 2003
consolidation and growth

5. REGULATIONS
SEBI (mutual funds) Regulations, 1996
 Association of mutual funds of
INDIA(AMFI)

6. ADVANTAGES OF MUTUAL FUND
Return potential
Transparency
Convenience and Knowledge
Flexibility
Liquidity
Well regulated
Tax benefits

7. MUTUAL FUND OPERATION
FLOW CHART

8. TYPES OF MUTUAL FUNDs
Mutual
Funds
By Maturity
Period
By Investment
Objective
Equity
Income
Balance
fund
Money
market
Gilt fund
Index
fund
Close
ended
Open
ended

9. Various Mutual Funds in India
 State Bank of India mutual fund
 ICICI prudential mutual fund
 TATA mutual fund
 HDFC mutual fund
 Birla sun life mutual fund
 Reliance mutual fund
 Kotak Mahindra mutual fund etc..

10. CONCLUSION
o Investors while investing in the mutual funds should
to be cautious, because Mutual funds are emerged
to diversify the risk while maximizing returns. With
mutual fund one can earn optimum return with
minimum level of risk, even though mutual funds
diversify risk but are not possible to avoid entire risk.
Investors are suggested to be aware of the risk,
where returns from stock markets are subjected to
market risk.