The document provides information about mutual funds in India. It begins by defining a mutual fund as an investment scheme that collects money from investors and invests it in various assets like stocks and bonds. It then describes the key parties involved in mutual funds in India - the sponsor, board of trustees, asset management company (AMC), and custodian. It discusses the types of mutual fund schemes, including open-ended, close-ended, and interval funds. It also outlines some of the major advantages of investing in mutual funds such as professional management, diversification, affordability, and tax benefits.

1. INVESTMENT
SCHEME
MUTUAL FUNDS

2. What is mutual fund
A Mutual Fund is an investment scheme that collects money
from people and invests those funds in various assets. The
money collected from various investors is usually invested in
financial securities like shares and money-market instruments
like certificate of deposit and bonds. Equity, debt and money-
market instruments are broad classifications of asset classes.
These investments may be made for the short term, medium
term or long term. The kind of asset invested in also
determines the risk factor of the funds.

3. Mutual Funds in India are created as trusts. The parties involved are:
Sponsor – This is the one who sets up the Mutual Fund or trust. A sponsor is similar
to a promoter of a company. The sponsor of a Mutual Fund appoints / sets up the
board of trustees, the asset management company or fund house and appoints the
custodian.
Board of trustees - The role of the trustees is to ensure that the interests of Mutual
Fund holders are protected. The board of trustees also needs to ensure that the fund
house complies with all the rules laid down by the Securities Exchange Board of
India (SEBI). The board needs to have at least four independent directors. The
trustees act according to the Trust Deed executed by the sponsor. The board sees to
it that the fund house has established the required infrastructure and ensures that
processes are in place to operate and manage the fund effectively. The board
appoints the main members of the fund house including the board of directors and
fund managers (scheme-wise). They also devise the fund house’s internal control
and audit processes including the rules for enrolling and dealing with brokers /
agents.
Asset Management Company (AMC)/Fund house - An AMC or fund house will act
as the investment manager for the trust. It will be responsible for the day to day
operations. This means that it is be taking care of all the money put in by investors.
The AMC or fund house is appointed by the sponsor or the board of trustees. SEBI
approval is required for setting up the AMC. 40% of its net worth should be
contributed by the sponsor.
Custodian – A custodian is one who has custody of all the shares and securities
invested in by the AMC. The custodian is responsible for the investment account of a
fund house.

4. Types of Mutual Fund schemes
There are different types of Mutual Fund schemes and they are generally classified
based on how they invest. However, all schemes are broadly classified as open-
ended and close-ended schemes.
Open-ended - Open-ended Mutual Fund schemes are open for investment at any
point of time. They offer liquidity to investors since units can be bought and sold
freely.
Close-ended - Close-ended Mutual Fund schemes remain open only for a short
period of time. Once the scheme is closed, fresh investments cannot be made. In
order to provide liquidity, these units are listed on stock exchanges and investors
can trade in them.
Interval - Interval schemes are a variation of close-ended schemes that are
reopened for redemption for a limited period of time during the scheme’s tenure.
Investors are given the option to sell their units back to the fund during this period.
Mutual Funds are then further categorised depending on the investment goal the
fund is trying to fulfill. While some investors seek capital protection and safe returns,
others have a strong risk appetite and look for high returns.
Growth funds or capital protection funds
Income funds – These schemes aim to provide income for the investors.
Liquid funds – These funds invest in fixed-income securities such as bonds and
government securities.
Balanced funds – These funds invest both in equity as well as fixed-income
securities to provide returns while trying to keep the risks to a minimum.

5. Advantages of investing in mutual funds
Mutual funds have become a very popular investment option in India and this trend still
continues with new funds and schemes being introduced in the market regularly. Some of
the key reasons why people invest in mutual funds are outlined below.
Professional management: Mutual funds are managed by fund managers of asset
management companies. These managers employ their investment expertise to minimise
risks and maximise returns to investors. Individuals often find it difficult to decide which
assets to invest their savings in due to lack of financial knowledge.
Diversification of risks: Since funds invest in a number of securities, risk is diversified.
The chances of all stocks performing badly at the same time is low. Losses suffered on
some stocks are offset by gains made on others. This leads to minimization of risks.
Affordable investment option: For those who don’t have sizeable amounts to invest in
direct equity or other instruments that require a high initial investment, mutual funds
make for an affordable investment avenue. Also, transaction costs are spread out over a
number of investors thereby lowering individual costs.
Focused investments: All mutual funds feature schemes clearly specifying which assets
are targeted for investments, allowing investors to direct savings to different asset
classes in an organised and focused manner. It also gives investors access to certain
securities otherwise unavailable to them e.g. foreign sectors or foreign securities which
cannot be invested in by individuals.
Choice of assets: There are various types of funds e.g. equity funds, debt funds, money
market funds, hybrid funds, sector funds, regional funds, fund of funds, index funds etc.
giving investors a wide range of choice.
Easy purchase and redemption: Fund units can be easily bought and sold at prevailing
unit prices or NAVs. Unless there’s a lock-in period, it is easy for investors to buy into or
out of a fund thereby providing liquidity.

6. Tax benefits: A number of funds/schemes have been designed to act as tax-
saving instruments e.g. ELSS or equity linked saving schemes. Investments
made in these schemes qualify for income tax deductions.
High returns: Mutual funds have been known to provide good returns on
medium and long-term investments since investors can diversify risk to
enhance overall returns.
Regulated investments: All funds come under the purview of SEBI (Securities
Exchange Board of India) which ensures dealings are as per regulations. This
provides an element of safety to investments made.
Easy to track: It can be hard for investors to regularly review their investment
portfolios. Mutual funds provide clear statements of all investments which
makes it easy for investors to keep a tab on. Hybrid or balanced funds provide
investors an avenue to access both equity and debt funds at one go in a
proportion of choice.
SIP options: Systematic Investment Plans let individuals invest small amounts
on a regular basis to avail benefits of rupee cost averaging. It’s an alternative to
those who cannot invest lump sum amounts thereby appealing to investors
across income levels. Mutual funds accept initial investments as low as Rs.500.
Flexibility through fund switching: Many funds offer investors flexibility by
letting investors switch between schemes or between funds to avail better
terms and/or better returns.

7. Who can invest in mutual funds in India?
Mutual funds are open to a wide range of investors including Resident Individuals, NRIs,
PIOs, HUFs, Companies, Partnership Firms, Trusts, Cooperative Societies, Banking and
Non-Banking Financial Institutions, registered FIIs, QFIs etc. This is not an exhaustive list
but represents the more commonly known types of investors in mutual funds in India.
How to invest in mutual funds
Mutual funds are made easily accessible to investors. Applications can be made in the
following ways.
Agents: These are professionals who are trained to reach out to customers to provide
information on the various funds provided by a company. They help process applications
and deal with related issues e.g. redemption, cancellation, transfer of units and other
dealings with the company. Agent commissions, which normally range up to 6%, are
added on to the purchase price of fund units.
Direct: Customers can circumvent agents and apply to a scheme themselves. They can
do this by visiting the nearest office of the mutual fund company or by going online.
Forms can be availed and submitted at the appropriate office or downloaded from the
company website and submitted at the office. Alternatively, applications can be
processed online.

8. Top 10 Large Cap-oriented Equity Funds
Mirae Asset India Opportunities Direct-G
Motilal Oswal MOSt Focused 25 Direct-G
Aditya Birla SL Top 100 Direct-G
Kotak Classic Equity - Direct (G)
Aditya Birla SL Top 100-G
SBI Blue Chip Fund - Direct (G)
Invesco India Dynamic Equity Fund(G)
Franklin India Bluechip Fund(D)
ICICI Pru Focused Bluechip Equity Direct-G
Aditya Birla SL Frontline Equity Fund(D)

9. BIRLA SUNLIFE
MUTUAL FUND
Birla Sun Life Mutual Fund was established in 1994. It is a joint venture
between the Indian Aditya Birla Group and the Canadian Sun Life Financial
Company. This momentous collaboration brings together experience in the
Indian market and combines it with global experience. Birla Sun Life Mutual
Fund’s investments are managed by Birla Sun Life Asset Management Co.
Ltd.
Aditya Birla Group is one of the largest business houses in India with
operations in 26 countries across the world. With a whopping US$29 billion,
Aditya Birla Group is in the league of Fortune 500 companies. The company
boasts of a strong number of 1,30,000 employees of around 40 different
nationalities. Aditya Birla Group has 60% of its revenue coming in from
worldwide operations.
Sun Life Financial Company, which was chartered in 1865, is a leading
financial services organisation. It is known around the world for providing its
individual and corporate customers with a diverse range of wealth
accumulation and protection products. Sun Life Financial Company has
operations in key worldwide markets.

10. Types of Funds
Birla Sun Life Mutual Fund has a varied range of investment options
including equity schemes that are diversified as well as sector specific.
Fund of Fund SchemesThe company provides its customers with fund
of fund schemes which is a method of investing called ‘multi
management’. This scheme is a mutual fund that invests in other mutual
funds.
Hybrid SchemesHybrid schemes are a combination of debt and equity
schemes. This scheme provides investors with a mix of debt and equity
securities of different proportions.
Monthly Income FundsMonthly income funds are intended to generate
monthly income by investing in debt and money market instruments.
Birla Sun Life Mutual Funds have a large range of debt and treasury
products, in addition to offshore funds.

11. Why Choose Birla Sun Life Mutual Fund?
Following are some of the benefits of investing in Birla Sun Life’s Mutual Funds.
Strong Team of AnalystsBirla Sun Life Mutual Fund’s investment manager, Birla
Sun Life Asset Management Company Ltd. has the world’s largest analysts in the
industry.
SafetyWith concrete commitment towards tracking down the investment
industry’s best companies for its investors, Birla Sun Life Mutual Fund has the
ongoing adherence to the safety of their customer’s money.
Tax BenefitsMoreover, investors stand to save on taxes with Birla Sun Life
Mutual Fund as Section 80C of the Income Tax Act, 1961 provides options for
saving tax by reducing taxable income. For example, Birla Sun Life Tax Relief 96
offers investors with tax savings.
Fixed Income VehicleBirla Sun Life Mutual Fund is the investment answer for
investors who are seeking a fixed investment vehicle.
Wealth CreationIt is also a beneficial solution for investors pursuing wealth
creation.
Monthly Income ProviderFurthermore, Birla Sun Life Mutual Fund can also
suffice as a monthly income provider. It is also beneficial for those looking for
short term funds.

12. HDFC MUTUAL FUND
About HDFC
HDFC or the Housing Development Finance Corporation Limited is one of India’s
premier financial conglomerates. It was established in 1977 as a mortgage
company and has since grown into a financial giant that has major subsidiaries like
HDFC Bank, HDFC Standard Life Insurance Company Limited and even HDFC
Asset Management Company among others. The services provided by the
company range from mortgages to insurance to Mutual Funds.
About HDFC Mutual Fund
Mutual Funds are the products offered by the asset management company HDFC
Mutual Funds. It was established as a trust under HDFC along with Standard Life
Investments Limited as the sponsor. The trustee of the company is HDFC Trustee
Company Limited. The company launched its first product in 2000 and has grown
considerably since then to offer Mutual Funds spread across 13 different types of
funds.
In a recent move, HDFC Mutual Fund, which is India’s largest Mutual Funds
manager, acquired Morgan Stanley’s business when they exited the country. The
eight schemes of Morgan Stanley that were bought by HDFC had a combined
value of Rs. 3,290 crore. This move has put HDFC Mutual Fund even further
ahead of its competitors in the Mutual Funds market.

13. Funds Offered By HDFC Mutual Fund
HDFC Mutual Fund offers a wide variety of Mutual Funds for investors to choose
from. They range from the regular equity and debt funds to funds of funds
schemes, liquid funds, etc.
Equity
Equity funds are designed to invest mostly in the equity markets. The
management of these funds can be active or passive (index funds). The various
fund options offered under this scheme are meant to meet the long-term
investment needs of the customers.
Debt / Income
The debt funds, or income funds invest in short or long-term bonds, the money
market, floating rate investments, etc. The purpose of these investments is to
generate an income for the investor and that is exactly what the plans offered by
HDFC Mutual Fund do.
Liquid
Liquid funds are funds that make investments in fixed-income, short-term
securities that come with maturity periods of 91 or less days. This makes them a
low-risk investment option. These funds come without exit loads.
Children's Gift Fund
The Children’s Gift Fund offered by HDFCMF is a scheme that has been
designed to provide a chance for the investor’s capital to grow over the long
term. The fund was launched for investors to meet the goals set for their children.

14. HDFC Mutual Fund’s Exchange Traded Funds or ETFs are funds that are traded
on the stock market. They offer higher liquidity and come with lower fees when
compared to other Mutual Funds. HDFC Mutual Fund offers 3 different types of
funds in this category.
Annual Interval Fund - Series 1
The investment objective of the plan under the scheme is to generate income
through investments in Debt / Money Market Instruments and Government
Securities maturing on or before the opening of the immediately following
specified transaction period.
Rajiv Gandhi Equity Savings Scheme
The Rajiv Gandhi Equity Savings Scheme (RGESS) is an equity investment
scheme that offers investors tax benefits. It is meant to encourage small
investors to start investing in the capital markets.
Fixed Maturity Plan
The Fixed Maturity Plans offered by the company are Mutual Funds that invest in
government securities and debt markets. They involve low risk and are close-
ended schemes.
Fund of Fund Schemes
This scheme invests in other Mutual Funds. HDFC Mutual Fund offers Gold Fund
and Dynamic PE Ratio Fund under this category.
HDFC Capital Protection Oriented Schemes
This is a scheme that is aimed at generating income for investors by investing in
the debt market. The instruments that they invest in come with fixed maturity

15. Why choose HDFC Mutual Fund?
HDFC Mutual Fund has a lot of offer to potential investors. The
company boasts of offering customers a chance to invest profitably. This
is made obvious by the following observations about the company.
Many of the products offered by the company come with CRISIL ratings
of 3 and above.
The company offers investors a huge variety of funds to invest in.
Investors can get tax advantages by investing with HDFC MF’s ELSS.
The funds on offer range from short-term to long-term and can be used
to meet investor goals. They offer both close and open-ended funds.
The company offers low, medium and high-risk products.

16. THANK YOU!!!!