2. MUTUAL FUNDS
• A Mutual Fund is a professionally managed
investment fund that pools money from many
investors to purchase securities. These investors may
be retail or institutional in nature.
• Mutual Funds gives amall or individual investors
access to professionally managed portfolios of
equities, bonds and other securities.
3. PROCESS OF MUTUAL FUNDS
INVESTORS
MUTUAL
FUNDS
SECURITIES
RETURNS
Given back to Pool their money
with
Which is InvestedThat generates
4. HISTORY OF MUTUAL FUNDS
PHASES TIME PERIOD HISTORY
PHASE-1 1964-87 •In 1963, UTI was set up by
Parliament.
•The first Equity Fund was
launched in 1986
PHASE-2 1987-93 •Non-UTI, Public Sector
Mutual Funds. For eg-SBI
Mutual Fund, LIC Mutual
Funds.
PHASE-3 1993-96 •Introducing Private Sector
Funds.
PHASE-4 1996 •Investor Friendly
Regulatory measures taken
by SEBI.
5.
6. ADVANTAGES OF MUTUAL FUNDS:-
• It is Professionally Managed.
• It provides Transparency.
• It offers Diversifiacation.
• It provides Liquidity.
• It is highly Regulated.
• It allows to switch to other schemes.
7. DISADVANTAGES OF MUTUAL FUNDS:-
• Mutual Funds are subject to Market Risk.
• No Guarantee of Returns.
• Selecting Right Financial Securities is not easy.
• Unethical Practises is not easy.
• Cost Management not proportional to performance.
