1. MUTUAL FUNDS IN INDIA
A Broad Industry Outlook

2. 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.

3. MUTUAL FUND OPERATION
FLOWCHART

4. ADVANTAGES
 Professional Management
 Diversification
 Return Potential
 Low Costs
 Liquidity
 Transparency
 Flexibility
 Choice of schemes
 Tax benefits
 Well regulated

5. DISADVANTAGES
 Costs Control Not in the Hands of an Investor
 No Customized Portfolios
 Difficulty in Selecting a Suitable Fund Scheme
 Dilution

6. TYPES OF MUTUAL FUNDS
 Equity Funds
 Debt/Income Funds
 Money Market/Liquid Funds
 Hybrid Funds
 Gilt Funds
 Others
 Commodity Funds
 Real Estate Funds
 Exchange Traded Funds
 Fund of Funds

7. HISTORY OF THE INDIAN
MUTUAL FUND INDUSTRY
 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

8. BROAD INDUSTRY
OUTLOOK FOR
MUTUAL FUNDS IN
INDIA

9. CONTENTS IN THIS SECTION
 FIIs vs. Mutual Funds: Net Investments; A
Comparison.
 Net Investments by Mutual Funds in the Indian
Markets
 Mobilization of Funds
 Public Sector vs. Private Sector
 For Various Types Of Schemes
 Average net assets under management
 Net asset values for various types of schemes
 Unit holding pattern of mutual fund industry

10. FIIs vs. Mutual Funds:
Net Investments; A
Comparison

11. FIIS: NET INVESTMENTS
*In Rs. Crore

12. MUTUAL FUNDS: NET INVESTMENTS:
*In Rs. Crore

13. EQUITY INVESTMENTS: MF VS. FIIS
*In Rs. Crore

14. DEBT INVESTMENTS: MF VS. FIIS
*In Rs. Crore

15. NET INVESTMENTS BY MUTUAL FUNDS IN
THE INDIAN MARKETS
*In Rs. Crore

16. MOBILISATION OF
FUNDS
 PublicSector vs. Public Sector
 For Various Types Of Schemes

17. PUBLIC SECTOR VS. PRIVATE SECTOR
*In Rs. Crore

18. FOR VARIOUS TYPES OF SCHEMES
*In Rs. Crore

19. AVERAGE NET ASSETS UNDER
MANAGEMENT
*In Rs. Crore

20. NET ASSET VALUES FOR VARIOUS TYPES OF
SCHEMES
*In Rs. Crore

21. Unit holding pattern of
mutual fund industry:
 For the industry as a whole.
 For private sector mutual
funds.
 For public sector mutual funds.

22. FOR THE INDUSTRY AS A WHOLE.

23. FOR PRIVATE SECTOR
MUTUAL FUNDS.

24. FOR PUBLIC SECTOR
MUTUAL FUNDS.

25. CONCLUSION
 The MF industry is poised to enter a phase of
consolidation because of:
 redemption pressures,
 lack of new issuances and
 sinking stock markets.

26. SOME MERGERS & ACQUISITIONS IN
RECENT YEARS
 In late 2008, Religare had acquired Lotus Asset
Management Company.
 December 2007, Reliance Capital sold about 5% of its
fund unit for Rs 500 crore to Eton Park.
 In October 2007, Pioneer Investments picked up a
51% stake in Bank of Baroda’s Asset Mangement
Company.
 In 2006, Canara Bank sold 49% stake in its asset
management subsidiary Canbank Investment
Management Services to the Netherlands-based
Robeco Group NV.