Topic

Mutual Fund And Its

Trend
By :
Abhishek Sagar
Chintan M Shingala
To :

Prof. Manisha Mishra

Introduction
A Mutual Fund is a trust that pools the savings of a number of
investors who share a common financial goal.
The money collected is invested in capital market instruments
such as shares, debentures etc.
The income earned through these investments and the capital
appreciation realized are shared by its unit holders.
The income earned is shared in proportion to the number of
units owned by them.
It is 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.

Emergence of Mutual Fund in India

Mutual funds in India began in 1964
Unit Trust of India (UTI) was the first MF company
Remains the market leader even today, Having
about 68% of the market share
Lost monopoly in 1987 With entry of public
sector mutual funds Promoted by public sector
banks and insurance companies
Industry was open to foreign institutions in 1993

Trends Of Mutual Fund In India

In 1963, finance minister Shri T. Krishnaswami
gave the idea of mutual funds.
The origin of mutual fund industry in India is with
the introduction of the concept of mutual fund by
UTI in the year 1963.
The first scheme launched by UTI was Unit
Scheme in 1964.
At the end of 1988 UTI had Rs.6,700 crores of
assets under management.

 Though the growth was slow, but it

accelerated from the year 1987 when non-UTI
players entered the industry.
SBI Mutual Fund was the first non- UTI Mutual
Fund established in June 1987
followed by: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)

The private sector entry to the MF rose the

AUM to Rs. 470 bn in March 1993.

 The 1993 SEBI (Mutual Fund) Regulations were substituted by a

more comprehensive and revised Mutual Fund Regulations in
1996.
The industry now functions under the SEBI (Mutual Fund)
Regulations 1996.
The number of mutual fund houses went on increasing, with
many foreign mutual funds setting up funds in India.
The industry
acquisitions.

has

also

witnessed

several

mergers

and

At the end of January 2003, there were 33 mutual funds with total
assets of Rs. 1,21,805 crores.
The Unit Trust of India was having highest Rs.44,541 crores of
assets under management in year 2003.

 SEBI Removed Entry Load in MF on 1

August, 2009
Introduction of Purchase/Sale facility
through Stock Exchanges November,
2009
National Stock Exchange (NSE) launched
India's first Mutual Fund Service System
(MFSS) on November 30, 2009 through
which an investor can subscribe or
redeem units of a mutual fund scheme

Diversification
Economies of Scale
Advantage of
Mutual Fund

Divisibility
Liquidity
Professional
Management

Fluctuating Returns
Diversification

Disadvantag
es of Mutual
Fund

Cash, Cash & More

Cash
Costs
Misleading
Advertisements
Evaluating Funds

Schemes of Mutual Fund

By
Structure
Open Ended Mutual
Funds

By
Objective
Income Oriented
Schemes
Growth Oriented
Schemes

High Growth Schemes

Hybrid Schemes

Close Ended Mutual

Funds

Tax Saving Schemes

Money Market Mutual
Funds

Process of Mutual Fund

Pass it
to

Investo
rs

Returns

Pool their
money with

Generat
es

Securiti
es

Fund
Manager
Invest
in

Investment Avenues of Mutual Fund

Equity Fund
Debt Fund
Index Fund
Sectorial Fund
Diversified Fund
Gold ETF

Regulatory Body of Mutual Fund

AMFI (Association of Mutual Fund in
India), the apex body of all the registered
Asset Management Companies.
Was incorporated on August 22, 1995, as
a non-profit organisation.
As of now, all the 47 Asset Management
Companies that are registered with SEBI,
are its members.

Valuation of NAV

Value of the Assets Value of Liabilities

NAV =
-----------------------------------------------------Number of funds units

Top performing Mutual Funds

Canara Robeco Emerging Equities (G)

Overall volume of Mutual

Fund
till
date
The total volume of mutual fund till 2014 is
10,00,000 cr from which 7,00,000 cr is into Debt &
3,00,000 cr is into Equity

Return in Mutual
Fund
The total return in Debt
is 11% and the total return
in Equity is 50%

Conclusion
Mutual fund industry is one of the
fastest growing industry in India and
it has already established in foreign
countries. Investing in Mutual Funds
is more safe as compared to equity
as well as it give handsome returns.

Sources

http://www.amfiindia.com
http://www.investopedia.com
http://www.moneycontrol.com
Optima Money Manager

Thank Y
u!!!