Under Guidance of : PRESENTED BY: ABHISHEK PATEL
INTRODUCTION A mutual fund is the trust that pools the savings of a number of investors who share a common financial goal. The mutual fund will have a fund manager who is responsible for investing the gathered money into specific securities (stocks or bonds).
HISTORY OF MUTUAL FUND First Phase – 1964-87 -Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. . The first scheme launched by UTI was Unit Scheme 1964. Second Phase – 1987-1993 (Entry of Public Sector Funds) -SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987.
CONT. Third Phase – 1993-2003 (Entry of Private Sector Funds) Kothari Pioneer was the first private sector mutual fund registered in July 1993.As at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1, 21,805 crores. Fourth Phase – since February 2003 -In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate entities.
How to Buy Mutual Funds You can buy mutual funds when mutual fund companies make initial public offerings. At this time you will usually have to pay the basic face value and not the market dictated price that includes a premium as in many cases. Buying mutual funds called closed end funds is from stock exchanges. Closed end funds are initially sold by fund companies in limited numbers and they are listed in a stock exchange to facilitate trading by investors.
TYPES OF MUTUAL FUNDSOn the basis of their structure and objective, mutual funds can be classified into following major types: Open-end funds Large cap Closed-end funds Mid-cap unds Equity funds Balanced funds Growth funds etc.
Mutual Fund: The Advantages Funds for all reasons and seasons Professional Investment Management Risk reduction through diversification Convenience Liquidity of investment Lower transaction costs Regulatory Protection Relatively higher returns
DISADVANTAGE OF MUTUAL FUND No Insurance: Mutual funds, although regulated by the government, are not insured against losses. Dilution: Although diversification reduces the amount of risk involved in investing in mutual funds, it can also be a disadvantage due to dilution. Loss of Control: The managers of mutual funds make all of the decisions about which securities to buy and sell and when to do so.