Mutual Fund ??

M.F. are investment companies which pool huge amount of money from investors and offer to sell and buy back shares.
Mutual Fund as an individual securities. Risk Distribution. Distribution of return.

Brief History
Phase.1.(1964)Establishment and Growth of Unit Trust of India(UTI). (US-64 , ULIP-1971). Phase.2.(1987)Entry of Public Sector Funds
Public Sector banks, Insurance Companies (SBI Mutual fund-1st non UTI fund, Canera bank, PNB LIC, etc.)

Cont..

Phase.3.(1993)Emergence Of Private Sector Joint Ventures Foreign investment

Phase .4.(1996)Growth of SEBI Promotion and Awareness.

Growth Over The Period(1965-2006)

TYPES OF MUTUAL FUND SCHEMES

By Structure
Open-Ended Scheme- no fixed maturity anytime enter/exit

Closed-Ended Scheme- listed on stock exchange stipulated maturity period

By Investment Objective

Equity Fund Scheme- invests in stocks long term (3 years or more) Debt Fund Scheme- invests in fixed income securities (3-10 months) Balanced Fund Scheme- invests in stocks and fixed

DIFFERENT MUTUAL FUNDS AVAILABLE

RISK HIERARCHY

WHY MUTUAL FUND ?

PROFESSIONAL MANAGEMENT: Investors get the benefit of such expertise and research at no extra cost. REDUCED RISK : The Investment risk is diversified . HIGH LIQUIDITY : The investors can get money back within 1-5 days . TAX RELIEF : Income earned from mutual funds as dividends is tax free.

WHY NOT MUTUAL FUND?

SUPPRESSING INFORMATION : Mutual fund do not disclose details of securities transacted in its different investment schemes. HIGH COST : As the fee charged by the management firm can be quite high. CHOICE OVERLOAD : Various schemes offered by mutual fund make it difficult for investors to choose between them.

FUTURE OF MUTUAL FUND

By December 2004, Indian mutual fund industry reached Rs 1,50,537 crore. It is estimated that by 2010 end, the total assets of all scheduled commercial banks should be Rs 40,90,000 crore. The annual composite rate of growth is expected 13.4% during the rest of the decade

FUTURE OF MUTUAL FUND

In the last 5 years we have seen annual growth rate of 9%. According to the current growth rate , by year 2010, mutual fund assets will be double Mutual fund -----10% of bank deposits

SOME FACTS
100% growth in the last 6 years. Channelising savings need of an hour We have approx 29 mutual fund. US have 800 mutual fund . There is a big scope for expansion Need to penetrate in rural areas

SOME MORE FACTS

Number of foreign AMCs are que to enter the Indian markets like Fidelity Investments, US based, with over US$1trillion assets under management worldwide. B &C class cities are growing rapidly.Today most of the mutual funds are concentrating on the A class cities. Soon they will find