Mutual Fund
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Mutual Fund is a managed type of collective investment scheme that collects money from investors and invests the money on their behalf.
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Mutual Fund
- 2. 1. What is Mutual Fund? 2. History of Mutual Fund 3. Types of Mutual Fund 4. Advantages of Mutual Fund 5. Disadvantages of Mutual Fund 6. Services offered by Mutual Fund 7. Companies Who Starts The Mutual Funds
- 3. WHAT IS MUTUAL FUND It is a managed type of collective investment scheme that collects money from investors and invests the money on their behalf. It charges a small fee for managing the money.
- 4. HISTORY OF MUTUAL FUND It started in 1963 with the formation of UTI, at the initiative of the Government of India and RBI. The history of mutual funds divided into four distinct phases
- 5. First Phase - 1964-1987 In 1978 UTI was de-linked from the RBI and the IDBI took over the regulatory and administrative control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs. 6,700 crores of assets under management.
- 6. Second Phase - 1987-1993 (Entry of Public Sector Funds) 1987 marked the entry of non-UTI, public sector mutual funds set up by public sector banks and LIC and GIC. At the end of 1993, the mutual fund industry had assets under management of Rs. 47,004 crores.
- 7. Third Phase - 1993-2003 (Entry of Private Sector Funds) With the entry of private sector funds in 1993, a new era started in the Indian mutual fund industry, giving the Indian investors a wider choice of fund families. At the end of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805 crores.
- 8. Fourth Phase - since February 2003 In February 2003, following the repeal of the UTI Act 1963 UTI was into two separate entities. One is the Specified Undertaking of the UTI with assets under management of Rs. 29,835 crores as at the end of January 2003. The second is the UTI Mutual Fund, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations.
- 9. 3. Types of Mutual Fund By Investment Object i) Growth ii) Income iii) Balanced By Structure i) Open-ended ii) Close-ended iii) Interval
- 10. Advantages of Mutual Fund Simplicity: Mutual Funds Are Easy to Understand Accessibility: Mutual Funds Are Easy to Buy Diversity: Mutual Funds Have Broad Market Exposure Variety: Mutual Funds Come In Many Different Categories and Types Affordability: Mutual Funds Have Low Minimums Flexibility: Mutual Funds Have Several Uses and Applications
- 11. Disadvantages of Mutual Fund Mutual Funds Have Hidden Fees Mutual Funds Lack Liquidity Mutual Funds Have High Sales Charges Mutual Funds and Poor Trade Execution All Mutual Funds Have High Capital Gains Distributions
- 12. Services offered by Mutual Fund Automatically investments and withdrawal plans Transfer of retirement assets Check writing Phone or internet switching Wiring and funds express options
- 13. Companies Who Starts The Mutual Funds Axis mutual fund Baroda pioneer mutual fund HDFC mutual fund SBI mutual fund TATA mutual fund Reliance mutual fund IDBI mutual fund IDFC mutual fund, etc...