1. Mutual Fund And Its Trend In
India
Made By
Mr. Vishal Narvekar
[SYBFM]

2. 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.

3. 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

4. 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.

5. • 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.

6. • 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 has also witnessed several mergers and acquisitions.
• 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.

7. • 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

8. Advantage of
Mutual Fund
Diversification
Economies of Scale
Divisibility
Liquidity
Professional Management
The Bottom Line

9. Disadvantages of
Mutual Fund
Fluctuating Returns
Diversification
Cash, Cash & More Cash
Costs
Misleading Advertisements
Evaluating Funds

10. Schemes of Mutual Fund
By Structure
Open Ended Mutual Funds
Close Ended Mutual Funds
By Objective
Income Oriented Schemes
Growth Oriented Schemes
High Growth Schemes
Hybrid Schemes
Tax Saving Schemes
Money Market Mutual Funds

11. Process of Mutual Fund
Investors
Fund ManagerSecurities
Returns
Pool their money
with
Invest in
Generates
Pass it to

12. Organisation of a Mutual Fund
FUND SPONSPOR/SETTLOR
KOTAK MAHINDRA FINANCE LTD.
UNIT HOLDERS
TRUSTEE
KOTAK
MAHINDRA
TRUSTEE CO. LTD.
INVESTMENT
MANAGER &
ADVISOR
KOTAK MAHINDRA ASSET
MANAGEMENT CO. LTD.
TRUST
KOTAK MAHINDRA MUTUAL FUND

13. INVESTMENT MANAGER & ADVISOR
KOTAK MAHINDRA ASSET
MANAGEMENT CO. LTD.
APPOINTS
•CUSTODIANS
•REGISTRARS
• BANK
•DISTRIBUTORS

14. Investment Avenues of Mutual
Fund
Equity Fund
Debt Fund
Index Fund
Sectoral Fund
Diversified Fund
Gold ETF

15. 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 44 Asset Management
Companies that are registered with SEBI, are
its members.

16. Restrictions on investments by
Mutual Funds
• Investment in debts instruments (rated below
Investment) shall not exceed 15% of NAV
• Debt instruments issued by a single issuer only up to
10% of the NAV
• Not more than 10% of the paid up capital in any Co.
• Issue expenses shall not exceed 6% of the fund
• No investment in unlisted associate company

17. Growth In Asset Under Management
0
100000
200000
300000
400000
500000
600000
700000
Re.(crores)
Years
Source: AMFI website

18. Valuation of NAV
Total Market Value of the Assets /Securities in the
Portfolio of the Fund – All Liabilities
NAV = -------------------------------------------------------
Number of fund’s units outstanding

19. Major Mutual Fund Companies in
India & Comparison
Birla Sun
Life
Mutual
Fund
HDFC
Mutual
Fund
ICICI
Prudential
Mutual
Fund
Reliance
Mutual
Fund
UTI
Mutual
Fund

20. 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.

21. Sources
• http://www.amfiindia.com
• http://www.investopedia.com
• http://www.livemint.com/Leisure/7geeBIScf3
HZAN8M5marTJ/5-top-mutual-fund-
houses.html
• http://www.preservearticles.com/201203312
9506/short-notes-on-organisation-of-mutual-
funds.html

22. Thank Y u…!!!