2. By,
Mohammed Sameer,
II nd, MBA (gen).
UNDER THE GUIDANCE OF
Dr. Vasantha MBA, M. Com, M. Phil, Phd, DSCM.
SCHOOL OF MANAGEMENT STUDIES
VELS UNIVERSITY
3. CONCEPT OF MUTUAL FUNDS
• According to Pierce, James L, it is a non depositary financial intermediaries
which acts an important vehicle for bringing wealth holders and deficit units
together directly.
• Weston, J. Fred & Brigham, Eugene. F in their looks of managerial finance
state that MF are corporations that accepts dollars from savers & then use the
dollars to buy a stock, LT & ST. Instruments issued by business. These corporation
pool funds & thus reduce risk by diversification.
4.
5.
6. HISTORY
• Introduced in the yr 1963 by Unit trust of India (1963).
• Growth was slow.
• Accelerated in 1987.
• When non UTI players entered, In both aspect Quality & Quantity.
• Before the monopoly of the market had seen an ending phase.
• Growth was not familiarised
7. MUTUAL FUND PHASES
• There are totally four phases
1. First Phase (1964-87).
2. Second Phase (1987-93) Entry of public sector.
3. Third Phase (1993-03) Entry of private sector
4. Fourth Phase.
8. FIRST PHASE (1964-87)
• UTI established 1963 by parliament.
• Set up by RBI under regulatory and admin control 1978.
• UTI got delinked with RBI & IDBI took the control.
• 1st scheme was 1964 at the end of 1988 UTI had Rs. 6700 AUM.
9. II PHASE (1987-93) ENTRY OF PUBLIC SECTOR
• SBI was the first followed by CAN Bank MF- December 1987
• PNB- August 1989.
• IB & LIC- November 1989.
• BOI & GIC – June 1990.
• BOB- October 1992.
• In 1993 AUM marked as 47,004 crore.
10. THIRD PHASE 1993-03 ENTRY OF PRIVATE
SECTOR
• Kothari Pioneer (merged with Franklin Templeton) was the 1st PS registered in
July1993.
• 1993 (SEBI) entered revised and addition with regulations 1996.
• It is under SEBI.
• 2003 end of January 33 MF with total assets of Rs 1,21,805 crores.
• UTI was having 44,541 crores AUM ahead with other MF.