mutual fiunds

MUTUAL FUNDS IN INDIA

By,Mohammed Sameer,

II nd, MBA (gen).

UNDER THE GUIDANCE OF Dr. Vasantha MBA, M. Com, M. Phil, Phd, DSCM.

SCHOOL OF MANAGEMENT STUDIES VELS UNIVERSITY

CONCEPT OF MUTUAL FUNDS

• According to Pierce, James L, it is a non depositary financial intermediaries which acts an important vehicle for bringing wealth holders and deficit units together directly.

• Weston, J. Fred & Brigham, Eugene. F in their looks of managerial finance state that MF are corporations that accepts dollars from savers & then use the dollars to buy a stock, LT & ST. Instruments issued by business. These corporation pool funds & thus reduce risk by diversification.

HISTORY• Introduced in the yr 1963 by Unit trust of India (1963).

• Growth was slow.

• Accelerated in 1987.

• When non UTI players entered, In both aspect Quality & Quantity.

• Before the monopoly of the market had seen an ending phase.

• Growth was not familiarised

MUTUAL FUND PHASES

• There are totally four phases

1. First Phase (1964-87).2. Second Phase (1987-93) Entry of public sector.3. Third Phase (1993-03) Entry of private sector4. Fourth Phase.

FIRST PHASE (1964-87)

• UTI established 1963 by parliament.

• Set up by RBI under regulatory and admin control 1978.

• UTI got delinked with RBI & IDBI took the control.

• 1st scheme was 1964 at the end of 1988 UTI had Rs. 6700 AUM.

II PHASE (1987-93) ENTRY OF PUBLIC SECTOR• SBI was the first followed by CAN Bank MF- December 1987

• PNB- August 1989.

• IB & LIC- November 1989.

• BOI & GIC – June 1990.

• BOB- October 1992.

• In 1993 AUM marked as 47,004 crore.

THIRD PHASE 1993-03 ENTRY OF PRIVATE SECTOR

• Kothari Pioneer (merged with Franklin Templeton) was the 1st PS registered in July1993.

• 1993 (SEBI) entered revised and addition with regulations 1996.

• It is under SEBI.

• 2003 end of January 33 MF with total assets of Rs 1,21,805 crores.

• UTI was having 44,541 crores AUM ahead with other MF.

ORGANIZATION

STRUCTURE