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. History of MF industry
The 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 – 1964-87
Second Phase – 1987-1993 (Entry of Public Sector
Funds)
Third Phase – 1993-2003 (Entry of Private Sector
Funds)
Fourth Phase – since February 2003
12. 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
13. • Name(s) of Auditors :M/s Haribhakti & Co
• Name(s) of Custodian: Stock Holding
Corporation of India Limited
14. Types of Schemes
• By Structure
– Open Ended Schemes
– Close Ended Schemes
– Interval Schemes
15. 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
16. Categories
• Tax saving schemes
• Special Schemes
– Index Schemes
– Sector Specific Schemes
– ELSS
– ETFS
– Fund of Funds
17. Evaluation of MF
• Key financial numbers
1. Asset Mix
2. NAV
3. Entry and exit loads
4. Market price, repurchase price and reissue
5. Discount
6. Rate of return
7. Beta
8. Gross dividend yield
9. Sharpe ratio
• Rating of MF schemes
CRISIL, Value research India, Economic times
18. • 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.
19. 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
20. 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
