The document summarizes the historical evolution of mutual funds in India from 1964 to the present. It describes four phases: 1) 1964-1987 when UTI was established and was the sole mutual fund provider. 2) 1987-1993 when public sector banks entered the market and launched their own funds. 3) 1993-2003 when private sector funds like Kothari Pioneer (now Franklin Templeton) were allowed and the number of funds grew to 33 with assets of Rs. 1,21,805 crores. 4) Post-2003 when UTI was bifurcated into a specified undertaking and UTI Mutual Fund Ltd.

3. HISTORICAL EVOLUTION
•First Phase – 1964-87 -Unit Trust of India (UTI) was established on
1963 by an Act of Parliament. . 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.
•Second Phase – 1987-1993 (Entry of Public Sector Funds) -SBI
Mutual Fund was the first non- UTI Mutual Fund established in June
1987 followed by Canbank Mutual Fund (Dec 87), Punjab National Bank
Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of
India (Jun 90), Bank of Baroda Mutual Fund (Oct 92)

4. •Third Phase – 1993-2003 (Entry of Private Sector Funds)
Kothari Pioneer (now merged with Franklin Templeton) was
the first private sector mutual fund registered in July 1993. As
at the end of January 2003, there were 33 mutual funds with
total assets of Rs. 1, 21,805 crores.
•Fourth Phase – since February 2003 -In February 2003,
following the repeal of the Unit Trust of India Act 1963 UTI
was bifurcated into two separate entities.

5.  One is the Specified Undertaking of the Unit Trust of India with assets
under management of Rs.29, 835 crores as at the end of January 2003,
representing broadly, the assets of US 64 scheme, assured return and
certain other schemes. The Specified Undertaking of Unit Trust of
India, functioning under an administrator and under the rules framed
by Government of India and does not come under the purview of the
Mutual Fund Regulations
 The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB,
BOB and LIC. It is registered with SEBI and functions under the
Mutual Fund Regulations

6. ADVANTAGES

Professional Management
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Diversification
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Return potential
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Low cost
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Liquidity
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Transparency
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Flexibility
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Choice of schemes
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Well regulated
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Tax benefits

7. ORGANIZATION OF MUTUAL FUND

8. Type of
Mutual Fund
Schemes
Structure
Investment
Objective
Special
Schemes
Open Ended
Funds
Growth Funds
Industry
Specific
Schemes
Close Ended
Funds
Income Funds
Index
Schemes
Balanced
Funds
NOTE: SEBI Regulations stipulate that at least one of the two exit routes is provided to the
investor i.e. either repurchase facility or through listing on stock exchanges. These mutual
funds schemes disclose NAV generally on weekly basis.

9. SCHEMES ACCORDING TO INVESTMENT
OBJECTIVE
 Growth / Equity Oriented Scheme
 Income / Debt Oriented Scheme
 Balanced Fund
 Money Market or Liquid Fund
 Fund of funds
 Index Funds
 Sector specific funds/schemes
 Tax Saving Schemes

10. LOAD OR NO LOAD FUND
Mutual funds incur certain expenses such as brokerage, marketing
expenses, and communication expenses. These expenses are known as
‘load’.
A Load Fund is one that charges a percentage of NAV for entry or exit.
That is, each time one buys or sells units in the fund, a charge will be
payable. This charge is used by the mutual fund for marketing and
distribution expenses. Suppose the NAV per unit is Rs.10. If the entry as
well as exit load charged is 1%, then the investors who buy would be
required to pay Rs.10.10 The investors should take the loads into
consideration while making investment as these affect their
yields/returns. A no-load fund is one that does not charge for entry or
exit. It means the investors can enter the fund/scheme at NAV and no
additional charges are payable on purchase or sale of units.

12. STRENGTHS
 Liquidity
 Transparency
 Affordability
 Diversification
 Government support by
way of tax concessions

13. WEAKNESS
 Poor participation of retail investors
 Distribution is confined only to metro
cities
 Cost pressures
 Lack of financial literacy

14. OPPORTUNITIES
 Huge untapped market.
 High level of savings among
people.
 Using on online mode of trading
system.

15. THREATS
 Increasing competition.
 High level of volatility in stock
market.
 Possibility of more stringent
regulations by SEBI, RBI, AMFI
in future.

16. Name of the Companies
Reliance
Birla Sunlife
State bank of India(SBI)
HSBC
Tata
Edelweiss
HDFC
JP Morgan
ABN Amro
Kotak Mahindra bank
AIG
JM financial
Bank of Baroda
Goldman Sachs
Canara bank
UTI(Unit Trust of India)
ICICI
Standard Chartard
DBS Cholamandalam AMC
Fidelity
DSP Merrill lynch
Franklin Templeton

17. SEBI GUIDELINES FOR MUTUAL FUNDS
Unit Trust of India was the first mutual fund set up in India in the year 1963. In early
1990s, Government allowed public sector banks and institutions to set up mutual funds.
In the year 1992, Securities and exchange Board of India (SEBI) Act was passed. The
objectives of SEBI are – to protect the interest of investors in securities and to promote
the development of and to regulate the securities market.
As far as mutual funds are concerned, SEBI formulates policies and regulates the
mutual funds to protect the interest of the investors. SEBI notified regulations for the
mutual funds in 1993. Thereafter, mutual funds sponsored by private sector entities
were allowed to enter the capital market. The regulations were fully revised in 1996 and
have been amended thereafter from time to time. SEBI has also issued guidelines to the
mutual funds from time to time to protect the interests of investors.
All mutual funds whether promoted by public sector or private sector entities including
those promoted by foreign entities are governed by the same set of Regulations. There
is no distinction in regulatory requirements for these mutual funds and all are subject to
monitoring and inspections by SEBI. The risks associated with the schemes launched
by the mutual funds sponsored by these entities are of similar type.

18. Governed by SEBI (Mutual Fund) Regulation 1996
All MFs registered with it, constituted as trusts ( under
Indian Trusts Act, 1882)
Bank operated MFs supervised by RBI too
AMC registered as Companies registered under Companies
Act, 1956
SEBI- Very detailed guidelines for disclosures in offer
document, offer period, investment guidelines etc.
NAV to be declared everyday for open-ended, every week
for closed ended
Disclose on website, AMFI, newspapers
Half-yearly results, annual reports
Select Benchmark depending on scheme and compare

19. ASSOCIATION OF MUTUAL FUNDS IN INDIA
 Association of Mutual Funds in India (AMFI) was incorporated on
22nd August, 1995.
 (AMFI) modeled on the lines of a Self Regulating Organization
(SRO) with a view to 'promoting and protecting the interest of
mutual funds and their unit-holders, increasing public awareness of
mutual funds, and serving the investor’s interest by defining and
maintaining high ethical and professional standards in the mutual
funds industry'
 Association of Mutual Funds India has brought down the
Indian mutual fund industry to a professional and healthy market
with ethical lines enhancing and maintaining standards.
 It follows the principle of both protecting and promoting the interests
of mutual funds as well as their unit holders.

20. OBJECTIVES OF AMFI
 AMFI interacts with SEBI and works according to SEBIs guidelines
in the mutual fund industry.
 To recommend and promote best business practices and code of
conduct to be followed by members and others engaged in the
activities of mutual fund and asset management including agencies
connected or involved in the field of capital markets and financial
services.
 Association of Mutual Fund of India do represent the Government of
India, the Reserve Bank of India and other related bodies on matters
relating to the Mutual Fund Industry.
 It develops a team of well qualified and trained Agent distributors. It
implements a programme of training and certification for all
intermediaries and other engaged in the mutual fund industry.

21.  AMFI undertakes all India awareness programme for investors in
order to promote proper understanding of the concept and working of
mutual funds.
 Association of mutual fund of India also disseminate information on
Mutual Fund Industry and undertakes studies and research either
directly or in association with other bodies.

22. 10 REASONS TO INVEST IN MUTUAL FUNDS
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Expert on your side
Limited risk
More for less
Easy investing
Convenience
Investor protection.
Quick access to your money
Transparency
Low transaction costs
Tax benefits

23. QUESTIONS???

24. THANK YOU!!!!!