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M.F. are investment companies which pool hugeamount of money from investors and offer to selland buy back shares.

Mutual Fund as an individual securities.

Risk Distribution.

Distribution of return.

Mutual Fund ??

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Phase.1.(1964)-Establishment and Growth of Unit Trust ofIndia(UTI).

(US-64 , ULIP-1971).

Phase.2.(1987)-

Entry of Public Sector Funds

Public Sector banks, Insurance Companies

(SBI Mutual fund-1st non UTI fund, Canera bank, PNB

LIC, etc.)

Brief History

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Cont..

Phase.3.(1993)-

Emergence Of Private Sector

Foreign investment

Joint Ventures

Phase .4.(1996)-Growth of SEBI

Promotion and Awareness.

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Growth Over The Period(1965-2006)

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By StructureBy Structure

Open-Ended Scheme- no fixedOpen-Ended Scheme- no fixedmaturitymaturity

anytimeanytimeenter/exitenter/exit

Closed-Ended Scheme- listed onClosed-Ended Scheme- listed onstock exchangestock exchange stipulatedstipulatedmaturity periodmaturity period

TYPES OF MUTUAL FUNDSCHEMES

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By Investment ObjectiveBy Investment Objective

Equity Fund Scheme- invests in stocksEquity Fund Scheme- invests in stocks

long term (3long term (3

years or more)years or more)

Debt Fund Scheme- invests in fixedDebt Fund Scheme- invests in fixed

income securitiesincome securities

(3-10 months)(3-10 months)

Balanced Fund Scheme- invests inBalanced Fund Scheme- invests in

stocks and fixedstocks and fixed

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DIFFERENT MUTUAL FUNDSAVAILABLE

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RISK HIERARCHY

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PROFESSIONAL MANAGEMENT:Investors get the benefit of such expertise and

research at no extra cost.

REDUCED RISK :The Investment risk is diversified .

HIGH LIQUIDITY:The investors can get money back within 1-5

days .

TAX RELIEF :Income earned from mutual funds as dividends

is tax free.

WHY MUTUAL FUND ?

WHY NOT MUTUAL

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SUPPRESSING INFORMATION :

Mutual fund do not disclose details ofsecurities transacted in its differentinvestment schemes.

HIGH COST:

As the fee charged by the managementfirm can be quite high.

CHOICE OVERLOAD :

Various schemes offered by mutual fund

make it difficult for investors to choosebetween them.

WHY NOT MUTUALFUND?

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By December 2004, Indianmutual fund industry reachedRs 1,50,537 crore. It is

estimated that by 2010 end, thetotal assets of all scheduledcommercial banks should be Rs

40,90,000 crore.The annual composite rate ofgrowth is expected 13.4%durin the rest of the decade

FUTURE OF MUTUAL FUND

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In the last 5 years we have seenannual growth rate of 9%.

According to the current growth rate, by year 2010, mutual fund assetswill be double

Mutual fund -----10% of bankdeposits

FUTURE OF MUTUAL

FUND

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100% growth in the last 6 years.

Channelising savings need of an

hourWe have approx 29 mutual fund. UShave 800 mutual fund . There is a

big scope for expansionNeed to penetrate in rural areas

SOME FACTS

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Number of foreign AMCs are que toenter the Indian markets like Fidelity

Investments, US based, with overUS$1trillion assets undermanagement worldwide.

B &C class cities are growingrapidly.Today most of the mutualfunds are concentrating on the A

class cities Soon they will find

SOME MORE FACTS