1. Mutual Funds

2. Operation Flow chart

3. 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.

4. History of MF industry
The mutual fund industry in India started in 1963
with the formation of Unit Trust of India, at the
initiative of the Government of India and Reserve
Bank of India.
First Phase – 1964-87
Second Phase – 1987-1993 (Entry of Public Sector
Funds)
Third Phase – 1993-2003 (Entry of Private Sector
Funds)
Fourth Phase – since February 2003

6. Organization of Mutual Fund

7. Benefits
• Professional Management
• Diversification
• Convenient Administration
• Return Potential
• Low Costs
• Liquidity
• Transparency
• Flexibility
• Choice of schemes
• Tax benefits
• Well regulated

8. Mutual Funds in India
A. Bank Sponsored
1. Joint Ventures - Predominantly Indian
- Canara Robeco Asset Management Company Limited
 - SBI Funds Management Private Limited
2. Joint Ventures - Predominantly Foreign
 - Baroda Pioneer Asset Management Company Limited
3. Others
 - UTI Asset Management Company Ltd
B. Institutions
 - LIC Mutual Fund Asset Management Company Limited

9. C. Private Sector
 1. Indian
 - Axis Asset Management Company Ltd.
 - Benchmark Asset Management Company Pvt. Ltd.
 - DBS Cholamandalam Asset Management Ltd.
 - Deutsche Asset Management (India) Pvt. Ltd.
 - Edelweiss Asset Management Limited
 - Escorts Asset Management Limited
 - IDFC Asset Management Company Private Limited
 - JM Financial Asset Management Private Limited
 - Kotak Mahindra Asset Management Company Limited(KMAMCL)
 - Quantum Asset Management Co. Private Ltd.
 - Reliance Capital Asset Management Ltd.
 - Religare Asset Management Company Limited
 - Sahara Asset Management Company Private Limited
 - Tata Asset Management Limited
 - Taurus Asset Management Company Limited

10.  2. Foreign
 - AIG Global Asset Management Company (India) Pvt. Ltd.
 - FIL Fund Management Private Limited
 - Fortis Investment Management (India) Pvt. Ltd.
 - Franklin Templeton Asset Management (India) Private Limited
 - Goldman Sachs Asset Management (India) Private Limited
 - Mirae Asset Global Investments (India) Pvt. Ltd.
 3. Joint Ventures - Predominantly Indian
 - Birla Sun Life Asset Management Company Limited
 - DSP BlackRock Investment Managers Private Limited
 - HDFC Asset Management Company Limited
 - ICICI Prudential Asset Mgmt.Company Limited
 - Sundaram BNP Paribas Asset Management Company Limited

11.  4. Joint Ventures - Predominantly Foreign
 - AEGON Asset Management Company Pvt. Ltd.
 - Bharti AXA Investment Managers Private Limited
 - HSBC Asset Management (India) Private Ltd.
 - ING Investment Management (India) Pvt. Ltd.
 - JPMorgan Asset Management India Pvt. Ltd.
 - Morgan Stanley Investment Management Pvt.Ltd.
 - Principal Pnb Asset Management Co. Pvt. Ltd.
 - Shinsei Asset Management (India) Pvt. Ltd.

12. Organization of UTI Mutual Fund
 Date of setup of Mutual Fund: February 1, 2003
 Name(s) of Sponsor : a. State Bank of India
b. Punjab National Bank
c. Bank of Baroda
d. LIC
 Name of Trustee Company: UTI Trustee Company
Pvt. Ltd
 Name of the Asset Management Co.: UTI Asset
Management Company Ltd
 Date of Incorporation of AMC: November 14,
2002

13. • Name(s) of Auditors :M/s Haribhakti & Co
• Name(s) of Custodian: Stock Holding
Corporation of India Limited

14. Types of Schemes
• By Structure
– Open Ended Schemes
– Close Ended Schemes
– Interval Schemes

15. Categories of schemes
• By Investment Objectives
– Growth Schemes
– Income Schemes
– Debt Schemes
– Balance Schemes
– Liquid schemes
– GILT
– Money Market Schemes
– Equity Schemes
– Dual Funds
– Specialty Funds - Single Industry Fund

16. Categories
• Tax saving schemes
• Special Schemes
– Index Schemes
– Sector Specific Schemes
– ELSS
– ETFS
– Fund of Funds

17. Evaluation of MF
• Key financial numbers
1. Asset Mix
2. NAV
3. Entry and exit loads
4. Market price, repurchase price and reissue
5. Discount
6. Rate of return
7. Beta
8. Gross dividend yield
9. Sharpe ratio
• Rating of MF schemes
CRISIL, Value research India, Economic times

18. • NAV=
(market value of fund’s investment+ receivables+ accrued
income- liabilities- accrued expenses)/ no of units outstanding
• Repurchase / reissue Price
Is the price at which units under open-ended schemes are
repurchased and reissued by the Mutual Fund. Such prices
are NAV related
• Discount: closed ended schemes sell at discount
• Redemption Price
Is the price at which close-ended schemes redeem their units
on maturity. Such prices are NAV related.

19. Fund of Funds
• A fund of Funds scheme invests in mutual
funds scheme, instead of investing in
securities. Ex.
Pru ICICI Advisor Series, the first indian Fund of
Fund scheme.
• Higher diversification
• No tax burden
• Higher cost

20. ETF
• These are the schemes of various mutual funds
which are listed on the exchange. It is a hybrid of
open ended, closed ended and index funds. Ex.
Benchmark mutual fund’s scheme and Prudential
ICICI mutual fund’s Sensex prudential ICICI ETF, Gold
ETFs etc
 Traded at fair value
 Low cost
 Higher return