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FUNDS

SAMRITI GOELMBA LECTURER

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Contents Of

Presentation What are mutual funds

History of mutual funds

Types of mutual funds Advantages of mutual funds

Disadvantages of mutual funds

Future of mutual funds

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MEANING OF MUTUAL

FUNDS A Mutual Fund is a financial service that

receives money from public and invests it

in stock market and give return to theinvestor on the behalf of their risk.In breifwe can say that mutual funds is a processto invest the money in stock market

indirectly.The service provider company ofmutual funds invest money in stockmarket by the advice of their fundmanager.

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HISTORY OF MUTUAL

FUNDSIt is divided intoFIVEphases

1) 1963-1987 the UTI was solo player created by parliament act in 1963 first product was unit scheme managed assets of Rs.6700 crore

1) 1987-1993 SBI entered in this segment By the end total asset of UTI were Rs.38247

crore and that of SBI were Rs.8750 crore

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3. 1993-1996 Mutual fund industry was open for both

foreign and private sector.

SEBIs first set of regulations was set in 1993and revised in 1996.

3. 1996-1999 the implementation of SEBIs new

regulations.

Bank mutual funds were recast accordingSEBI recommended structure.

3. 1999-2007 Very rapid growth in the industry Many private players came in the market

Almost 36 AMCs with over 500k cr AUM.

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TYPES OF MUTUAL

FUNDSMutual funds offer further general choices to the investors in terms of

1) According to the scheme of operation

Open ended-These are funds that youcan buy and sell anytime throughout the

year.

Close ended-These are funds that areopen only for a specific period after which

youd have to buy them from the secondarymarket. For e.g. NFOs.

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2) According to location Domestic funds -These are the

funds which mobilise savings of people

within the country where investmentsare made.

Off-shore funds - Off-shore mutualfunds are those which raise or

mobilise funds in countries other thanwhere investments are to bemade.These funds attract foreignsavings for investment in India.

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ADVANTAGES Portfolio diversification

Professional management

Reduced risk

Liquidity

Tax benefit Choice of schemes

Higher returns

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DISADVANTAGES Liquidity crisis

Lack of innovation

Conventional pattern of investment

No guarantee

Poor risk management

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FUTURE OF MUTUAL FUNDS

IN INDIA By June 2007, Indian mutual fund industry reached Rs

1,50,537 crore ,and it is estimated to reach Rs40,90,000 crore by Dec 2015.Present AUM is overRs.500k crore.

We have approximately 36 mutual funds which ismuch less than US having more than 800. There is abig scope for expansion.

100% growth in the last 6 years.

Number of foreign AMC's are in the que to enter theIndian markets.

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MAJOR MARKET

PLAYERS UTI MUTUAL FUNDS PRUDENTIAL ICICI MUTUAL FUNDS RELIANCE MUTUAL FUNDS

HDFC MUTUAL FUNDS FRANKLIN TEMPLETON MUTUAL FUNDS BIRLA SUN LIFE MUTUAL FUNDS SBI MUTUAL FUNDS KOTAK MAHINDRA MUTUAL FUNDS

TATA MUTUAL FUNDS HSBC MUTUAL FUNDS

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