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Mutual Funds
Operation Flow chart
Concept• A Mutual Fund is a trust that pools the savings of a number of investors  who share a common financial goal.• The...
History of MF industryThe mutual fund industry in India started in 1963   with the formation of Unit Trust of India, at th...
Organization of Mutual Fund
Benefits•   Professional Management•   Diversification•   Convenient Administration•   Return Potential•   Low Costs•   Li...
Mutual Funds in IndiaA. Bank Sponsored1. Joint Ventures - Predominantly Indian - Canara Robeco Asset Management Company Li...
C. Private Sector 1. Indian - Axis Asset Management Company Ltd. - Benchmark Asset Management Company Pvt. Ltd. - DBS ...
   2.   Foreign    -   AIG Global Asset Management Company (India) Pvt. Ltd.    -   FIL Fund Management Private Limited...
 4.   Joint Ventures - Predominantly Foreign -    AEGON Asset Management Company Pvt. Ltd. -    Bharti AXA Investment M...
Organization of UTI Mutual Fund Date of setup of Mutual Fund: February 1, 2003 Name(s) of Sponsor : a. State Bank of Ind...
• Name(s) of Auditors :M/s Haribhakti & Co• Name(s) of Custodian: Stock Holding  Corporation of India Limited
Types of Schemes• By Structure  – Open Ended Schemes  – Close Ended Schemes  – Interval Schemes
Categories of schemes• By Investment Objectives  –   Growth Schemes  –   Income Schemes  –   Debt Schemes  –   Balance Sch...
Categories• Tax saving schemes• Special Schemes  – Index Schemes  – Sector Specific Schemes  – ELSS  – ETFS  – Fund of Funds
Evaluation of MF• Key financial numbers1. Asset Mix2. NAV3. Entry and exit loads4. Market price, repurchase price and reis...
• NAV= (market value of fund’s investment+ receivables+ accrued  income- liabilities- accrued expenses)/ no of units outst...
Fund of Funds• A fund of Funds scheme invests in mutual  funds scheme, instead of investing in  securities. Ex.  Pru ICICI...
ETF• These are the schemes of various mutual funds  which are listed on the exchange. It is a hybrid of  open ended, close...
Mutual fund
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Mutual fund

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Mutual fund

  1. 1. Mutual Funds
  2. 2. Operation Flow chart
  3. 3. Concept• A Mutual Fund is a trust that pools 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.• The income earned through these investments and the capital appreciation realised are shared by its unit holders in proportion to the number of units owned by them.• Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost.
  4. 4. History of MF industryThe mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the initiative of the Government of India and Reserve Bank of India.First Phase – 1964-87Second Phase – 1987-1993 (Entry of Public Sector Funds)Third Phase – 1993-2003 (Entry of Private Sector Funds)Fourth Phase – since February 2003
  5. 5. Organization of Mutual Fund
  6. 6. Benefits• Professional Management• Diversification• Convenient Administration• Return Potential• Low Costs• Liquidity• Transparency• Flexibility• Choice of schemes• Tax benefits• Well regulated
  7. 7. Mutual Funds in IndiaA. Bank Sponsored1. Joint Ventures - Predominantly Indian - Canara Robeco Asset Management Company Limited - SBI Funds Management Private Limited2. Joint Ventures - Predominantly Foreign - Baroda Pioneer Asset Management Company Limited3. Others - UTI Asset Management Company LtdB. Institutions - LIC Mutual Fund Asset Management Company Limited
  8. 8. C. Private Sector 1. Indian - Axis Asset Management Company Ltd. - Benchmark Asset Management Company Pvt. Ltd. - DBS Cholamandalam Asset Management Ltd. - Deutsche Asset Management (India) Pvt. Ltd. - Edelweiss Asset Management Limited - Escorts Asset Management Limited - IDFC Asset Management Company Private Limited - JM Financial Asset Management Private Limited - Kotak Mahindra Asset Management Company Limited(KMAMCL) - Quantum Asset Management Co. Private Ltd. - Reliance Capital Asset Management Ltd. - Religare Asset Management Company Limited - Sahara Asset Management Company Private Limited - Tata Asset Management Limited - Taurus Asset Management Company Limited
  9. 9.  2. Foreign - AIG Global Asset Management Company (India) Pvt. Ltd. - FIL Fund Management Private Limited - Fortis Investment Management (India) Pvt. Ltd. - Franklin Templeton Asset Management (India) Private Limited - Goldman Sachs Asset Management (India) Private Limited - Mirae Asset Global Investments (India) Pvt. Ltd. 3. Joint Ventures - Predominantly Indian - Birla Sun Life Asset Management Company Limited - DSP BlackRock Investment Managers Private Limited - HDFC Asset Management Company Limited - ICICI Prudential Asset Mgmt.Company Limited - Sundaram BNP Paribas Asset Management Company Limited
  10. 10.  4. Joint Ventures - Predominantly Foreign - AEGON Asset Management Company Pvt. Ltd. - Bharti AXA Investment Managers Private Limited - HSBC Asset Management (India) Private Ltd. - ING Investment Management (India) Pvt. Ltd. - JPMorgan Asset Management India Pvt. Ltd. - Morgan Stanley Investment Management Pvt.Ltd. - Principal Pnb Asset Management Co. Pvt. Ltd. - Shinsei Asset Management (India) Pvt. Ltd.
  11. 11. Organization of UTI Mutual Fund Date of setup of Mutual Fund: February 1, 2003 Name(s) of Sponsor : a. State Bank of India b. Punjab National Bank c. Bank of Baroda d. LIC Name of Trustee Company: UTI Trustee Company Pvt. Ltd Name of the Asset Management Co.: UTI Asset Management Company Ltd Date of Incorporation of AMC: November 14, 2002
  12. 12. • Name(s) of Auditors :M/s Haribhakti & Co• Name(s) of Custodian: Stock Holding Corporation of India Limited
  13. 13. Types of Schemes• By Structure – Open Ended Schemes – Close Ended Schemes – Interval Schemes
  14. 14. Categories of schemes• By Investment Objectives – Growth Schemes – Income Schemes – Debt Schemes – Balance Schemes – Liquid schemes – GILT – Money Market Schemes – Equity Schemes – Dual Funds – Specialty Funds - Single Industry Fund
  15. 15. Categories• Tax saving schemes• Special Schemes – Index Schemes – Sector Specific Schemes – ELSS – ETFS – Fund of Funds
  16. 16. Evaluation of MF• Key financial numbers1. Asset Mix2. NAV3. Entry and exit loads4. Market price, repurchase price and reissue5. Discount6. Rate of return7. Beta8. Gross dividend yield9. Sharpe ratio• Rating of MF schemes CRISIL, Value research India, Economic times
  17. 17. • NAV= (market value of fund’s investment+ receivables+ accrued income- liabilities- accrued expenses)/ no of units outstanding• Repurchase / reissue Price Is the price at which units under open-ended schemes are repurchased and reissued by the Mutual Fund. Such prices are NAV related• Discount: closed ended schemes sell at discount• Redemption Price Is the price at which close-ended schemes redeem their units on maturity. Such prices are NAV related.
  18. 18. Fund of Funds• A fund of Funds scheme invests in mutual funds scheme, instead of investing in securities. Ex. Pru ICICI Advisor Series, the first indian Fund of Fund scheme.• Higher diversification• No tax burden• Higher cost
  19. 19. ETF• These are the schemes of various mutual funds which are listed on the exchange. It is a hybrid of open ended, closed ended and index funds. Ex. Benchmark mutual fund’s scheme and Prudential ICICI mutual fund’s Sensex prudential ICICI ETF, Gold ETFs etc Traded at fair value Low cost Higher return

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