- A mutual fund is an investment vehicle that pools money from many investors and invests it in stocks, bonds, and other securities. The income earned and capital appreciation are shared by its unit holders proportionate to their investment. - The first mutual fund was created in 1774 in the Netherlands as a way to diversify risk for small investors across different countries and industries. - In the US, the modern mutual fund was established in 1924 with the Massachusetts Investors Trust. Subsequent regulation in the 1930s aimed to increase transparency and disclosure for investors.

2. What is Mutual Fund ?

3. •A Mutual fund is a trust that pools the savings of a number
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 realized is 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,proferssionally managed basket of securities at a
relatively low cost.
•A mutual fund is also known as an open-ended investment
fund, which means the fund sells units (of this pool on money)
upon request.

4. The mutual fund was born from a financial crisis that staggered Europe in the early
1770s.
The British East India Company had borrowed heavily during the preceding boom years
to support its ambitious colonial interests, particularly in North America where unrest
would culminate in revolution in a few short years.
As expenses increased and revenue from colonial adventures fell, the East India
Company sought a bailout in 1772 from the already-stressed British treasury. It was the
“original too big to fail corporation and the repercussions were felt across the continent
and indeed around the world.
At the same time, the Dutch were facing their own challenges, expanding and exploring
like the British and taking “copy-cat risks” in a pattern that has drawn parallels to the
banking crisis of 2008.

5. Against this backdrop, a Dutch merchant, Adriaan van Ketwich, had the foresight to pool
money from a number of subscribers to form an investment trust the world’s first mutual
fund in 1774. The financial risk to the mainly small investors was spread by diversifying
across a number of European countries and the American colonies, where investments
were backed by income from plantations, an early version of today’s mortgage-backed
securities.

7. From the History and Evolution of Mutual Fund we came to know that it is been
introduced when there the British Colonial did not have money for colonial interest and
they had taken money in lend and completed their work while the other party got the
interest out of that.
Here we can make one point clear that when there was a need it was introduced. Also
the innovation which took place was great as we know from then onwards mutual
funding has become a big success as the development of any country runs on mutual
fund
No country in this world have become powerful by not taking money on lend,
countries like , USA, Russia, China, UK, etc

8. The creation of the Massachusetts Investors' Trust in
Boston, Massachusetts, heralded the arrival of the modern mutual fund in 1924. The
fund went public in 1928, eventually spawning the mutual fund firm known today as MFS
Investment Management.
After the stock market crash of 1929, Congress passed a series of acts regulating the
securities markets in general and mutual funds in particular.
The Securities Act of 1933 requires that all investments sold to the public, including
mutual funds, be registered with the SEC and that they provide prospective investors
with a prospectus that discloses essential facts about the investment. The Securities and
Exchange Act of 1934 requires that issuers of securities, including mutual funds, report
regularly to their investors;

15. • Open for all the year • Open for fixed period
• Min Subs amt 50 Cr. • Min Subs amt 20 Cr.
• No duration • Duration (5 to 7 years)
• Refunded if min. subs. not
achieved
• Refunded if min. amt. not achieved
• Repurchased anytime
• May be repurchased (After 2 to 3
years)
• Redeemed at Nav & Load factor ranges
(4% to 6%)
• Redemption specified & done at Nav-
service charge
• As repurchased so not listed at
stock
exchange
• Listed at stock exchange
• Divid. May/may not be switchover
allowed
• Divid. May/may not be switchover
allowed

18. The first introduction of a mutual fund in India occurred in 1963, when the Government
of India launched Unit Trust of India (UTI). UTI enjoyed a monopoly in the Indian
mutual fund market till1987.
Much later, in 1987, SBI Mutual Fund became the first non-UTI mutual fund in India.

20. The Securities and Exchange Board of India (SEBI)
is the regulator for the securities market in India. It was
established in the year 1992 and given statutory powers on 12
April 1992 through the SEBI Act 1992

21. Function of SEBI
The Preamble of the Securities and Exchange Board of India
describes the basic functions of the Securities and Exchange
Board of India as "...to protect the interests of investors in
securities and to promote the development of, and to regulate
the securities market and for matters connected there with or
incidental there to".
SEBI has to be responsive to the needs of three groups, which
constitute the market:
1)The issuers of securities
2)The investors
3)The market intermediaries.

22. Powers of SEBI:
For the discharge of its functions efficiently, SEBI has been vested
with the following powers:
1)To approve by−laws of stock exchanges.
2)To require the stock exchange to amend their by−laws.
3)Inspect the books of accounts and call for periodical returns
from recognized stock exchanges.
4)Inspect the books of accounts of financial intermediaries.
5)Compel certain companies to list their shares in one or more
stock exchanges.
6)Registration brokers.

23. Legal structure of Mutual Fund
Fund sponspor/settlor
Kotak Mahindra finance ltd.
Trust
Kotak Mahindra mutual fund
Trustee
Kotak Mahindra
trustee co. ltd.
Investment
manager &
advisor
Kotak Mahindra asset
management co. ltd.
Unit Holders

24. •Appoints
• Custodians
• Registrars
• Banks
• Distributors
Investment Manager & Advisor
Kotak Mahindra Asset
Management Co. Ltd.