Demand determinants

1. MUTUAL FUNDS

2. WHAT IS MUTUAL FUND
• A mutual fund is a trust that pools the savings of a number of
investors who share a common financial goal.
• Large number of investors.
• One common investment objective
• Bonds, equities and other securities
• Distributed PROPORTIONATELY amongst INVESTORS.

4. MUTUAL FUNDS MANAGEMENT
• It is regulated under SEBI(Securities & Exchange Board of India)
• The Association of Mutual Funds in India (AMFI) Protects and
promotes the interests of mutual funds and their unit holders.
• Asset Management Company (AMC) is a group who manages the
entire affairs of the mutual fund.

5. Demand determinants
SUBSITUTES OF MUTUAL FUND
• FIXED DEPOSITS
• GOLD & ORNAMENTS
• FOREX
• REAL ESTATE
• SAVING A/C
CONSUMER INCOME
• NORMAL GOODS
DEMAND
INCOME

6. CONSUMER TASTE AND
PREFERENCE
• Myth about mutual funds
• Risk involvement
• Income
• Anytime money withdrawal
ADVERTISEMENT OF THE
PRODUCT
• Print media
• Social Media
• Electronic media
• Sponsors
• Bill board
• Awareness Campaign

7. EXPECTED UTILITY AT
EQUILIBRIUM
• Investment
• Savings
CONSUMER EXPECTATIONS
• Easily accessible
• Higher returns
• Low risk
• Flexibility in timing
• Better service
• Controllable & trackable

8. POPULATION OF THE COUNTRY
• Higher the population higher the
chances of investment.
DISTRIBUTION PATTERN OF
NATIONAL INCOME
• Higher the income higher the
investment.
• Liquid Funds - For very short
term – Less than 1 year
• Short Term Bond Funds – For the
medium term – 1 to 3 years.
• Long Term Bond Funds - For the
long term – 3 years or more

9. COMPETITION
• UTI Asset Management Company Ltd
• Axis Asset Management Company Ltd.
• Birla Sun Life Asset Management Company
Ltd
• BNP Paribas Asset Management India Pvt Ltd
• HDFC Asset Management Company Ltd
• HSBC Asset Management (India) Pvt. Ltd.
• ICICI Prudential Asset Management Company
Ltd
• And many more…
SOCIAL AND POLITICAL
ENVIRONMENT
• Change in law
• Change in government policies
• Insolvency and bankruptcy of a
company

10. TAXATION
• You can invest in tax saving mutual
fund schemes like government bonds.
• Only investments in Equity Linked
Savings Schemes (ELSSs) or tax saving
mutual fund schemes qualify for a tax
deduction under Section 80C of the
Income Tax Act.
• No benefits in GST
Awareness & education
• Now it’s a education curriculum
in many institutes and
universities
• Sales executives give details and
awareness about there
respective organization
• Training and development
provided to the staff
• Awareness campaign by AMFI

11. CONSUMER CREDIT FACILITY
• No loans or credit facility are
available for investing in mutual
funds
DEMOGRAPHIC EFFECT
• The minimum age for
investment in mutual funds is 18
years.
• No effect of marital status, caste,
religion or place of birth.

12. SUPPLY
• Above 18 years citizens are there customers.
• No definite predictions of season or market situation.
• Mainly investment banks and banks.