Mutual funds allow investors to pool their money together into a professionally managed investment fund that buys securities like stocks, bonds, and currencies. In India, mutual funds were first introduced by UTI in 1964. There are various types of mutual fund schemes, including open-ended or close-ended, income or growth, equity-linked or offshore. Investors can choose between direct mutual funds, which have lower costs, or regular mutual funds, which charge distribution commissions. The key advantages of mutual funds are liquidity, diversification, and professional management, while potential disadvantages include lock-in periods and lack of control over the portfolio.

2. Contents…
1 Meaning
2 Mutual funds in India
3 Schemes
4 Types
5 Process
6 Organization
7 Direct and Regular MFs
8 Advantages
9 Disadvantages
10 Advertisements
11 Mobile Applications

3. Meaning
 A mutual fund is a professionally
managed investment fund that pools money
from many investors to purchase securities
 Stocks, bonds, currencies, etc
 Operated by professional money managers

4. Mutual funds in India
 Entered with the launch of Unit scheme
64 by UTI(Unit trust of India)
 UTI marketshare was the first mutual
fund growth scheme launched by UTI,
in 1986

5. Public sector
MF
•SBI MF
•Bank of India
MF
•Indian bank MF
•Canara bank
MF
•PNB MF
•LIC
•GIC
Private sector
MF
•Limited number
of investors
•Minimal
investment higher
than public mf
Money market
MF
Invest primarily
in money market
instruments of
high quality and
of short term
maturities

6. Schemes
(each pool of money)
 Open ended-
 Available for subscription throughout the year
 Sales or repurchase prices are fixed by AMC
 Not traded on stock exchange
 Minimum corpus(to run a business)- 50 cr
 Close ended-
 Open for subscription only for a specified period
 Fixed amount of capital
 Traded on stock exchange
 Duration 5-7 years
 Minimum corpus- 20 cr
 Example- NFO(New Fund Offer)

7. Continued…
 Income schemes-
Bonds, debentures and other securities
 Growth schemes-(usually close ended)
 Equity
 Equity-linked savings schemes-(tax
planning and rebate of 20%)
 Domestic schemes
 Offshore schemes

8. NFOs

9. Types
 Money market funds
 Bond / Fixed income funds
 Equity funds
 Hybrid / Balanced funds
 Index funds
 Specialty funds

10. Simple
process

11. Organization
Mutual fund trustee
Sponso
r
Asset
management
company(AMC)
Custodia
n
Registrar and transfer
agent(RTA)
Example CAMS, Karvy

12. Example…
Mutual Fund Trust SBI mutual fund
Sponsor State Bank of India
Trustee SBI Mutual fund trustee company
AMC SBI funds management private ltd
Custodian HDFC bank
SBI-SG Global securities services
private limited
RTA Computer Age Management
Services private ltd.

13. What’s better???
AM
C
Direct MF Regular
MF
•Directly AMC
•No distribution
commission
•More NAV
•More returns
•Distribution
commission
•Less NAV
•Less returns

14. Advantages
 Liquidity
 Diversification
 Expert management
 Invest in smaller denominations
 Cost-efficiency

15. Disadvantages
 Lock in periods
 Dilution
 No control over portfolio

16. Advertising (By AMFI)
Association of mutual fund in
India

17. Mobile Applications
 My Cams
 InvesTap by SBI Mutual funds
 Ktrack by Karvy
 Fingo by Aditya Birla Sunlife mutual
funds
 HDFCMF