The document discusses the structure and operations of mutual funds in India. It describes how a mutual fund is structured as a trust with investors, a sponsor, an asset management company, and a board of trustees. It then covers the various types of mutual fund schemes, how funds are managed, the rights of unit holders, and key financial terms like NAV. The document also analyzes some issues facing the mutual fund industry in India like lack of innovation, high costs, and poor fund management.

1. WHAT IS A MUTUAL FUND? A Mutual Fund is a trust that pools the savings of a number of investors who share a common investment objective IN turn buy assets

2. LEGAL STRUCTURE 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 Contd…

5. TYPES OF MUTUAL FUNDS Type of Mutual Fund Schemes Structure Investment Objective Special Schemes Open Ended Funds Close Ended Funds Interval Funds Growth Funds Income Funds Balanced Funds Money Market Funds Industry Specific Schemes Index Schemes Sectoral Schemes

9. INVESTMENT OPTIONS High No price risk 9% - 10% Over 1 year Serial High Low Credit 9% - 10.5% 1 month – 12 months Bond High No 8% to 9.5% Overnight to 1 month Liquid Mutual Funds High Price Risk 7% - 9% <12 months T-Bills Routed thro’ PD’s Low 6.5% - 9% Overnight Call (thro’ PD’s) No secondary mkt. Medium 9% - 11% <180 days CD’s Possible by breaking FD at cost Low 6% - 12% 7 days to 1 yr. Bank Deposits Liquidity Risk Pre-Tax Returns Tenure Instrument

29. MUTUAL FUND MONITOR

30. MUTUAL FUND MONITOR

31. MUTUAL FUND OPEARATION PRODUCT DESIGN PRODUCT MARKETING FUND MANAGEMENT OUT SOURCING INVESTOR’S SERVICE THE CHAIN OF OPERATION FAILED IN ALL CHAINS OF OPERATIONS