Indian mutual fund , mutual fund , history of mutual fund in india , types of mutual fund , advantages and disadvantages of mutual fund

1. Indian Mutual fund
Industry
G.P.DINESH
II MBA
SITAMS

2. Introduction
A mutual fund is a professionally managed
type of collective investment scheme that
pools money from many investors and
invests it in stocks, bonds, short-term money
market instruments and other securities.
Mutual funds have a fund manager who
invests the money on behalf of the investors
by buying / selling stocks, bonds etc.

4. History of Mutual Funds in
India
• The first mutual fund was setup in 1963, when the
Govt. of India created UTI
• Until 1987, UTI enjoyed a monopoly in the Indian
mutual fund market
• In 1987, the Government of India permitted public
sector banks and the Life Insurance Corporation of
India (LIC) and General Insurance Corporation of
India (GIC) to enter the mutual fund industry.

5. •The State Bank of India's SBI Mutual Fund was
the first such mutual fund to be established in
1987
•Canara Bank set up Can bank Mutual Fund
shortly after in the same year.
•followed by funds from Punjab National Bank
and Indian Bank in 1989, Bank of India in 1990
and Bank of Baroda in 1992.
•Kothari Pioneer Mutual Fund (now merged into
Franklin Templeton Investments) was the first
private sector mutual fund to be registered in
July 1993.

6. Mutual Fund Phases
• First Phase - 1964-1987
• Second Phase - 1987-1993 (Entry of Public
Sector Funds)
• Third Phase - 1993-2003 (Entry of Private
Sector Funds)
• Fourth Phase - since February 2003

7. Mutual fund setup
• A mutual fund is set up in the form of a
trust
• Sponsor
• Trustees
• Asset Management Company (AMC)
• Custodian

8. Net Asset Value (NAV)
• The performance of a particular scheme of a
mutual fund is denoted by (NAV).
• Net Asset Value is the market value of the
securities held by the scheme. Since market
value of securities changes every day,
• NAV of a scheme also varies on day to day
basis.

9. The different types of mutual
fund schemes
– Open-ended Fund/ Scheme
– Close-ended Fund/ Scheme
– Growth / Equity Oriented Scheme
– Income / Debt Oriented Scheme
– Balanced Fund
– Money Market or Liquid Fund
– Gilt Fund & Index Funds

10. Advantages of Investing
In Mutual Funds
– Professional Management
– Diversification
– Low costs
– Liquidity
– Transparency
– Tax Benefits
– Well Regulated

11. Disadvantages of
Investing In MFs
• Fees and Commissions
• Management Risk
• Taxes

12. Conclusion
Mutual funds are not magic institutions which
can bring treasures to the millions of their
investors within a short span of time. All funds
are equal to start with. But in due course of
time, some excel the other. It all depends upon
the efficiency with which the fund is being
managed by the professionals of the fund.
Hence the investor is very careful in selecting a
fund.