A PRESENTAION

ON ORGANISATION OF

MUTUAL FUND

INTRODUCTION A mutual fund is a professionally-managed form of collective investments

that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities. In a mutual fund, the fund manager, who is also known as the portfolio manager, trades the fund's underlying securities, realizing capital gains or losses, and collects the dividend or interest income.

Legally known as an "open-end company" under the Investment Company Act of 1940(the primary regulatory statute governing investment companies), a mutual fund is one of three basic types of investment companies available in the United States.

CONCEPT• A Mutual Fund is a trust that pools

the savings of a number of 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 realised are 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, professionally managed basket of securities at a relatively low cost.

MUTUAL FUND OPERATION FLOW CHART

ORGANIZATION OF A MUTUAL FUND

An organization (or organisation — see spelling differences) is a social group which distributes tasks for a collective goal. The word itself is derived from the Greek word organon, itself derived from the better-known word ergon - as we know `organ` - and it means a compartment for a particular job.

Management is interested in organization mainly from an instrumental point of view. For a company, organization is a means to an end to achieve its goals, which are to create value for its stakeholders (stockholders, employees, customers, suppliers, community). moreover, (Samson, p 25. 2005) describes organising as “the management function concerned with assigning tasks, grouping tasks into departments, and allocating resources to departments

ORGANISATION STRUCTURE

MUTUAL FUND TRUST AND CORPORATION

AMC

SEBI

SPONSOR

ADVERTISER

FUND MANAGER

ADVISOR

CUSTODIAN

UNITHOLDERS (SHAREHOLDERS)

TRANSFER AGENT

AND REGISTRAR

TRUSTEE

CONCLUSION ITS VERY IMPORTANT FOR A MUTUAL

FUND TO SUCEED TO BE ORGANISED WELL WITH EXPERTISED PEOPLE HAVING WIDE FINANCIAL KNOWLEDGE AND EXPERIENCE..SO,IT CAN BE SAID A WELL ORGAINISED MUTUAL FUND WOLULD PROVIDE A SUBSTANTIL RETURNS TO INVESTORS…

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