The document provides an overview of mutual funds including their history, structure, types, how to buy them, advantages, and disadvantages. It discusses how mutual funds pool money from investors and are managed by fund managers who invest in stocks and bonds. It outlines the four phases of growth of mutual funds in India and describes open-ended and closed-ended funds as well as equity, growth, and balanced funds. The advantages include professional management, risk reduction, liquidity, and lower costs while disadvantages include lack of insurance, dilution of investments, and loss of control.

1. Under Guidance of :
PRESENTED
BY:
ABHISHEK PATEL

2. 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).

3. 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.

4. 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.

5. 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.

6. Mutual Fund Operation
Flow Chart

7. STRUCTURE OF MF

8. TYPES OF MUTUAL FUNDS
On 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.

9. 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

10. 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.