mutual fund management assign 3
TRANSCRIPT
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Amity CampusUttar Pradesh
India 201303
ASSIGNMENTSPROGRAM: MFC
SEMESTER-IISubject Name : MUTUAL FUND MANAGEMENT
Study COUNTRY : Zambia
Roll Number (Reg.No.) : MFC001412014-2016002
Student Name : DERICK MWANSA
INSTRUCTIONS
a) Students are required to submit all three assignment sets.
ASSIGNMENT DETAILS MARKS
Assignment A Five Subjective Questions 10
Assignment B Three Subjective Questions + Case Study 10
Assignment C Objective or one line Questions 10
b) Total weightage given to these assignments is 30%. OR 30 Marks
c) All assignments are to be completed as typed in word/pdf.
d) All questions are required to be attempted.
e) All the three assignments are to be completed by due dates and need to be
submitted for evaluation by Amity University.
f) The students have to attached a scan signature in the form.
Signature : _______________ ____________________
Date : ________________29/11/2015_________________
( √ ) Tick mark in front of the assignments submitted
Assignment
‘A’ √ Assignment ‘B’ √ Assignment ‘C’ √
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MUTUAL FUND MANAGEMENT
Assignment A
Question 1
Describe the structure of Mutual Funds.
Answer.
Mutual Fund Structure in India
In India Open end and Close end funds are constituted along one unique structure as unit
trusts. A mutual fund may have several different schemes, open and close ended, under it.
Open ended and Close ended schemes are governed by the same regulations and the
regulatory body, SEBI (MF) Regulations, 1996.
Sponsor (First tier)
Mutual Funds in India follow a 3-tier structure. There is a sponsor (the First tier), who thinks
of starting a mutual fund. The Sponsor approaches the Securities & Exchange Board of India
(SEBI), which is the market regulator and also the regulator for mutual funds. Not everyone
can start a mutual fund. SEBI checks whether the person is of integrity, whether he has
enough experience in the financial sector and his net worth.
Trustee (Second tier)
Once SEBI is convinced, the sponsor creates a public trust (the Second tier) as per the
Indian Trusts Act, 1882. Trusts have no legal identity in India and cannot enter into contracts,
hence the Trustees are the people authorized to act on behalf of the Trust. Contracts are
entered into in the name of the Trustees. Once the Trust is created, it is registered with SEBI
after which this trust is known as the mutual fund. Sponsor is not the Trust; that is Sponsor is
not the Mutual Fund. It is the Trust which is the Mutual Fund. The Trustees role is not to
manage the money. Their job is only to see, whether the money is being managed as per
stated objectives.
Asset Management Company (Third tier)
Trustees appoint the Asset Management Company (the Third tier), to manage investor’s
money. The AMC in return charges a fee for the services provided and this fee is borne by
the investors as it is deducted from the money collected from them. The AMC’s Board of
Directors must have at least 50% of Directors who are independent directors. The AMC has
to be approved by SEBI. The AMC functions under the supervision of its Board of Directors,
and also under the direction of the Trustees and SEBI. It is the AMC, which in the name of
the Trust, floats new schemes and manages these schemes by buying and selling securities. In
order to do this the AMC needs to follow all rules and regulations prescribed by SEBI and as
per the Investment Management Agreement it signs with the Trustees.
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Mutual fund accounts can be added to whenever you want (often or seldom) and in
small amounts.
After meeting the initial minimum to open your account, you can add just about any amount
you want. To make your purchase work out evenly, mutual funds sell "fractional" shares. For
example, if you invest $100 in a fund selling at $7.42 a share, the fund organization willcredit your account with 13.477 shares ($100.00 divided by $7.42 = 13.477).
Price movements of mutual funds are more predictable than those of individual stocks.
Their extensive diversification, coupled with outstanding stock selection, makes it highly
unlikely that the overall market will move up without carrying almost all stock mutual funds
up with it. For example, on Sept. 8, 2008, when the Dow jumped 290 points, more than 95%
of stock mutual funds were up for the day. Yet, of the more than 3,200 stocks that traded on
the New York Stock Exchange, only 63% ended the day with a gain. The rest ended the day
unchanged (2%) or actually fell in price (35%).
The past performance of mutual funds is a matter of public record.
Advisory services, financial planners, and stockbrokers have records of past performance, but
how public are they? And how were they computed? Did they include every recommendation
made for every account? Mutual funds have fully disclosed performance histories, which are
computed according to set standards. With a little research, you can learn exactly how various
mutual funds fared in relation to inflation or other investment alternatives.
Mutual funds provide full-time professional management.
Highly trained investment specialists are hired to make the decisions as to which stocks to
buy. The person with the ultimate decision-making authority is called the portfolio manager.
The manager possesses expertise in many financial areas, and hopefully has learned —
through experience — to avoid the common mistakes of the amateur investor. Most
important, the manager is expected to have the self-discipline necessary to doggedly stick
with the mutual fund’s strategy even when events move against him for a time.
Mutual funds allow you to efficiently reinvest your dividends.
If you were to spread $5,000 among five different stocks, your quarterly dividend checks
might amount to $10 from each one. It's not possible to use such a small amount to buy moreshares without paying very high relative commissions. Your mutual fund, however, will
gladly reinvest any size dividends for you automatically. This can add significantly to your
profits over several years.
Mutual funds offer you automatic withdrawal plans.
Most funds let you sell your shares automatically in an amount and frequency of your
choosing. This pre-planned selling enables the fund to mail you a check for a specified
amount monthly or quarterly. This allows investors in stock funds that pay little or no
dividends to receive periodic cash flow.
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Mutual funds provide you with individual attention.
In a mutual fund, the smallest member of the pool gets exactly the same attention as the
largest because everybody is in it together.
Mutual funds allow you to sell part or all of your shares at any time and get your moneyquickly.
By regulation, all open-end mutual funds must redeem (buy back) their shares at their net
asset value whenever you wish. Of course, the amount you get back will be more or less than
you initially put in, depending on how well the stocks in the portfolio have done during the
time you were a part owner of the pool.
Mutual funds provide a safe place for your investment money.
Mutual funds are required to hire an independent bank or trust company to hold and account
for all the cash and securities in the pool. This custodian has a legally binding responsibilityto protect the interests of every shareholder. No mutual fund shareholder has ever lost money
due to a mutual fund bankruptcy.
Mutual funds handle your paperwork for you.
Capital gains and losses from the sale of stocks, as well as dividend- and interest-income
earnings, are summarized into a report for each shareholder at the end of the year for tax
purposes.
Mutual funds can be borrowed against in case of an emergency.
Although you hope it will never be necessary, you can use the value of your mutual fund
holdings as collateral for a loan. If the need is short-term and you would rather not sell your
funds because of tax or investment reasons, you can borrow against them rather than sell
them.
Mutual funds involve no personal liability beyond the investment risk in the portfolio.
Many investments, primarily partnerships and futures, require investors to sign papers
wherein they agree to accept personal responsibility for certain liabilities generated by the
undertaking. Thus, it is possible for investors to actually lose more money than they invest.In contrast, mutual funds incur no personal risk.
Mutual funds enable you to instantly reduce the risk in your portfolio with just a phone
call.
Most large fund organizations allow investors to switch from one of their funds to another via
a phone call or over the Web and at no cost. One practical use of this feature is that is makes
it easy to reallocate your capital between funds that invest in different types of asset classes
as your goals and market expectations evolve.
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Mutual fund advisory services are available that can greatly ease the research burden.
Due to the tremendous growth in the popularity of mutual fund investing, there has been a big
jump in the number of investment newsletters that specialize in researching and writing about
mutual funds. My Sound Mind Investing newsletter, for example, offers model portfolios
geared to your risk tolerance and stage of life.
Mutual funds are heavily regulated by the federal government.
The fund industry is regulated by the Securities and Exchange Commission and is subject to
the provisions of the Investment Company Act of 1940. The act requires that all mutual funds
register with the SEC and that investors be given a prospectus, which must contain full
information concerning the fund’s history, operating policies, cost structure, and so on.
Additionally, all funds use a bank that serves as the custodian of all the pool assets. Thissafeguard means the securities in the fund are protected from theft, fraud, and even the
bankruptcy of the fund management organization itself.
ASSIGNMENT A
Question 3
Write a note on ‘Load structure’.
Answer.
A load is an amount which is paid by the investor to subscribe to the units or redeem the units
from the scheme. This amount is used by the Asset Management Company ( AMC) to pay
commission to the distributor and to take care of other marketing and selling expenses. Load
amounts are variable and are subject to change from time to time -Ms. Sarika (Mutual Fund
Management). The load is either paid up front at the time of purchase (front-end load), when
the shares are sold (back-end load), or as long as the fund is held by the investor (level-load).
There are also schemes that do not charge any load and are called "No Load Schemes". Theload on other types of transactions could be Dividend Reinvestment, Switch in/out,
Systematic Investment Plan, Systematic Withdrawal Plan, and Systematic Transfer Plan.
Details of the load structure can be shown diagrammatically like indicated below:-
Type of Load Load chargeable as % of NAV
Entry
Exit
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ASSIGNMENT A
Question 4
Discuss rights of an investor in mutual fund.
Answer.
It is important for investors to know their rights when they have put their money in a mutual
fund. According to the regulations laid down by the Securities and Exchange Board of India
(SEBI), you enjoy certain rights as a mutual fund investor. These rights are mentioned in the
contract investors receive when they make an investment. Below are some of the rights:-
As a mutual fund investor, you have the right to know everything about your fund.
This includes queries like how your investment is performing, what the investmentobjective of the mutual fund scheme is, where your money is invested, etc.
After buying units of a mutual fund scheme, you should receive a certificate from the
asset management company (AMC) that clearly mentions how many units of that fund
you own. In case you do not receive this certificate within six months of the
investment date, you have the right to question the mutual fund company regarding
the delay.
You also have the right to know all the relevant information about the company that
has undertaken the responsibility of managing the assets of the mutual fund. It is the
company's responsibility to keep you updated on any developments or changes thatcan impact your investment.
If any dividend is declared on your mutual fund scheme, you are entitled to receive
the proceeds within 42 days from the date of declaration by the company.
Unit holders of a mutual fund scheme also possess the right to wind-up the scheme if
75 percent or more investors pass a resolution.
The AMC of a mutual fund can be terminated in case 75 percent of the total unit
holders of that AMC vote for the same in a special meeting.
Change in Fundamental Attributes of Scheme-A written communication about the
proposed change is sent to each Unit-holder, and an advertisement is issued in anEnglish daily Newspaper having nationwide circulation, and in a newspaper published
in the language of the region where the head office of the mutual fund is
located. Dissenting unit-holders are given the option to exit at the prevailing Net
Asset Value, without any exit load. This exit window has to be open for at least 30
days. Scheme Portfolio-The mutual fund has to publish a complete statement of the scheme
portfolio and the unaudited financial results, within 1 month from the close of
each half year. The advertisement has to appear in one National English daily, and
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one newspaper published in the language of the region where the head office of the
mutual fund is situated.
Dematerialised form-Investor have option to keep investments either in
Dematerialised form or in physical form. So according to his wish Mutual Funds has
to co-ordinate with depository to facilitate this.
Nominee-Investor can appoint up to 3 nominees and need to mention % of share in
the event of his demise. If % of share not mentioned then equal distribution will be
done.
NAV Publishing-NAV need to be published daily within 9 PM on Mutual Funds site
and AMFI site. But for Funds of Funds (FOF) 10 AM of the following day.
Account Statement dispatch-Mutual Funds shall dispatch Statement of Accounts
within 5 business days from the closure of the NFO. But for transactions such as SIP
(Systematic Investment Plan), STP (Systematic Transfer Plan) and SWP (Systematic
Withdrawal Plan) they need to send you account statement on a quarterly base
(March, June, September and December). However the first investment statement
should be issued within 10 working days of initial transactions.
Delay in dispatch of redemption or repurchase proceedings-As per rule, mutual fund
companies need to process requests within 10 working days. If delay occurs then they
are liable to pay investor interest of 15% PA as delay cost.
Unclaimed redemption amount-Any unclaimed redemption amount shall be invested
in money market instruments. If investor claims within 3 years then payment should
be made according to prevailing NAV. But if investors failed to claim within 3 years
then the money will be pool account. Whenever investor claims for this amount NAVof 3rd year end will be payable. Amount earned by mutual fund companies from that
pool account will be utilized for investor education.
Purchasing Proceedings-Schemes other than ELSS need to be allotted with 5 working
days of closure of NFO. Open-ended schemes, other than ELSS, have to re-open
for on-going sale / re-purchase within 5 business days of allotment.
ASSIGNMENT A
Question 5
What do you mean by Net Asset Value (NA V)? Discuss how to calculate NAV of a fund.
Answer.
Net Asset Value (NAV) is the actual value of one unit of a given scheme on any given
business day.
The NAV r eflects the liquidation value of the fund's investments on that particular day after
accounting for all expenses. It is calculated by deducting all liabilities (except unit capital) of
the fund from the realisable value of all assets and dividing it by number of units outstanding.
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In accordance with SEBI (Mutual Funds) regulations, 1996 rounding off policy of NAV as
per the applicable guidelines shall be disclosed, policy on computation of NAV in case of
investing in foreign securities shall be disclosed and expenses to be charged to the scheme
outlined. Below is the formula for calculating Net Asset Value (NAV).
NET ASSET VALUE (Per Unit) = Total Market Value – Fund Liabilities
No. of outstanding Units
ASSIGNMENT B
Question 1
Discuss the Role of an Offer Document.
Answer.
The Offer Document is one of the most important sources of information regarding thefundamental and other attributes of a mutual fund and is issued by the asset managementcompany (AMC). It solicits prospective investors and serves the same purpose as a
prospectus that is issued by companies in the primary capital market.
The offer document of a closed-ended fund is brought out only once at the time of issuance asno new units are sold to investors after the offer period. However, the offer document of anopen-ended fund is valid for all times as the fund can issue and redeem units on a regular
basis. This information helps investors choose a mutual fund that matches their requirements.Investors need to note that their investment is governed by the principle of caveat emptor thatis let the buyer beware. An investor is presumed to have read the Offer Document, even if hehas not actually read it. Therefore, at a future date, the investor cannot claim that he was notaware of something, which is appropriately disclosed in the Offer Document. Below are someof the most important points covered in the offer document:-
Investment objectives and policiesThis section lists the asset allocation pattern and diversification policy of the fund. Theformer reflects the flexibility of the fund in terms of rebalancing its portfolio (equity, debt,money market, cash) so as to benefit from market movements. The diversification policydetermines the kind of sectors or stocks (large-, mid-, or small-cap, value stocks, growthstocks) in which the fund will invest. The investment objective of the fund must coincidewith that of the investor and, hence, one should analyse it before buying into one.
Risk profileThe offer document must make investors aware of the risk factors, which can be standard orspecific. The former are governed by market movements, whereas scheme-specific factorsare due to the fund's investment strategies like lock-in period (closed-ended) and limiteddiversification. For example, closed-ended sectoral funds exhibit high risk as their investment
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portfolio comprises stocks from the same industry. Such factors can significantly affect theinvestor's choice and need to be evaluated.
Fund expensesThis section contains information on the estimated expenses, which include recurringexpenses, initial issue expenses, loads, etc. If there is a variation in the estimated expenses for
the scheme and actual expenses for similar schemes in the past, the reasons should be clearlyexplained. This information can help determine the costs involved in investments and should
be scrutinised as these can significantly affect the returns over the long term. NAV and valuation
This section explains the valuation norms of assets and frequency of disclosure of NAV.Generally, open-ended funds calculate and declare NAVs daily. The valuation norms arecritical for funds that trade heavily in non-traded securities as it affects the NAVssignificantly.
Procedure for redemption or repurchase It explains how to determine the redemption and repurchase price of units and lists thecentres where investors can redeem their units.
Redressal mechanism This section helps investors judge the operational efficiency of fund management. The nameof the person to approach for queries, complaints, or redressal of grievances is mentioned. Investor's rights
The offer document lists the rights and obligations of investors with respect to the scheme'sassets, management, AMC and other constituents.The offer document is the primary vehicle for the investment decision. It acts as a legaldocument that protects and governs the right of the investors to information.
ASSIGNMENT B
Question 2
Discuss various distribution channels through which mutual fund schemes reach the
investors.
Answer.
Investors have varied investment objectives and can be classified as aggressive, moderate andconservative, depending on their risk profile. For each of these categories, asset managementcompanies (AMCs) devise different types of fund schemes, and it is important for investorsto buy those that match their investment goals.
Funds are bought and sold through distribution channels, which play a significant role inexplaining to the investors the various schemes available, their investment style, costs andexpenses. Below are various types of distribution channels.
Direct Channel
In the direct channel, investors carry out transactions directly with mutual funds themselves by mail, phone, internet or customer service centers. This is good for investors who do notneed the advisory services of agents and are well-versed with the fundamentals of the fund
industry. The channel provides the benefit of low cost, which significantly enhances thereturns in the long run.
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Indirect channel
This channel is widely prevalent in the fund industry. It involves the use of agents, who act asintermediaries between the fund and the investor. These agents are not exclusive for mutualfunds and can deal in multiple financial instruments. They have an in-depth knowledge about
the functioning of financial instruments and are in a position to act as financial advisers. Hereare some of the players in the indirect distribution channels.
Independent financial advisers (IFA)
These are individuals trained by AMCs for selling their products. Some IFAs are professionally qualified CFPs (certified financial planners). They help investors in choosingthe right fund schemes and assist them in financial planning. IFAs manage their costs throughthe commissions that they earn by selling funds.
Advice Channel
In the advice channel, investors purchase and redeem shares through financial advisers atsecurity firms, banks, insurance agencies and financial planning firms. They use theirnetwork to sell mutual funds. Their existing customer base serves as a captive prospectiveinvestor base for marketing funds. Banks also handle wealth management for their clients andmanage portfolios where mutual funds are one of the asset classes.
Organized distributors
They are the backbone of the indirect distribution channel. They have the infrastructure andresources for managing administrative paperwork, purchases and redemptions. Thesedistributors cater to the diverse nature of the investor community and the vast geographicspread of the country by establishing offices in rural and semi urban locations.
Supermarket Channel
In the supermarket channel, discount brokers offer a large number of mutual funds toinvestors from a broad array of fund companies.
Retirement Plan channel
In the retirement plan channel, employers sponsoring defined contribution plans select alimited number of mutual funds for retirement plan participants to purchase.
Institutional Channel
Institutional Channel consists of nonpersornal accounts held by trust, corporations, financialinstitutions, endowments, nonprofit businesses and other organizations.
In contrast to the institutional channel, investors in the other channels are principallyindividuals. It is only in the direct channel that investors interact with mutual funds
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themselves. In other channels such as advice, supermarket or retirement plan a third party orintermediary, whether a discount broker, financial adviser or a retirement plan administratorselected by 401(k) plan sponsor places transaction orders with mutual funds on behalf ofinvestors and provides services to investors on behalf of mutual funds. The funds themselvesmay not know the identity of the investor but only that of the intermediaries.
The players in the indirect channel assist investors in buying and redeeming fund units. Theytry to understand the risk profile of investors and suggest fund schemes that best suits theirobjectives. The indirect channel should be preferred over the direct channel when investorswant to seek expert advice on the risk-return mix or need help in understanding the featuresof the financial securities in which the fund invests as well as other important attributes ofmutual funds, such as benchmarking and tax treatment.
ASSIGNMENT B
Question 3
What do you mean by portfolio management? Develop a model portfolio for a young
call centre / BPO employee with no dependents.
Answer.
Portfolio Management is the art and science of making decisions about investment mix and policy, matching investments to objectives, asset allocation for individuals and institutions,and balancing risk against performance.
Portfolio management is all about strengths, weaknesses, opportunities and threats in thechoice of debt vs. equity, domestic vs. international, growth vs. safety, and many other trade-offs encountered in the attempt to maximize return at a given appetite for risk.
In the case of mutual and exchange-traded funds (ETFs), there are two forms of portfoliomanagement: passive and active. Passive management simply tracks a market index,commonly referred to as indexing or indexing investing. Active management involves asingle manager, co-managers, or a team of managers who attempt to beat the market return
by actively managing a fund's portfolio through investment decisions based on research anddecisions on individual holding. Closed-end funds are generally actively managed.
Model Portfolio
Since investors’ risk appetites vary, a single portfolio cannot be suggested for all. Financial
planners often work with model portfolios – the asset allocation mix that is most appropriate
for different risk appetite levels. The following would be an appropriate model portfolio for a
young call centre/BPO employee with no dependents.
Young call centre / BPO employee with no dependents
50% diversified equity schemes (preferably through SIP); 20% sector funds; 10% gold ETF,
10% diversified debt fund, 10% liquid schemes.
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ASSIGNMENT B
Case Study
The mutual fund industry in India started in 1963 with the formation of Unit Trust of India
(UTI) at the initiative of the Reserve Bank of India (RBI) and the Government of India. The
objective then was to attract small investors and introduce them to market investments. The
mutual fund industry can be broadly put into four phases according to the development of the
sector as shown in the diagram above. Below is a brief description of each of the four phases.
Phase 1 (March 1965- March 1987)
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In 1963, UTI was established by an Act of Parliament. As it was the only entity offeringmutual funds in India, it had a monopoly. Generally growth was slow in the first phase. Themain reason of its poor growth is that the mutual fund industry in India was new. Largesections of Indian investors were yet to appreciate the concept. Operationally, UTI was set up
by the Reserve Bank of India (RBI), but was later delinked from the RBI. The first scheme,
and for long one of the largest launched by UTI, was Unit Scheme 1964. Later in the 1970sand 80s, UTI started innovating and offering different schemes to suit the needs of differentclasses of investors. Unit Linked Insurance Plan (ULIP) was launched in 1971. The firstIndian offshore fund, India Fund was launched in August 1986. In absolute terms, theinvestible funds corpus of UTI was about Rs 600 crores in 1984. By 1987-88, the assetsunder management (AUM) of UTI had grown 10 times to Rs 6,700 crores.
Phase II (March 1987- March 1993): Entry of Public Sector Funds
The year 1987 marked the entry of other public sector mutual funds. With the opening up ofthe economy, many public sector banks and institutions were allowed to establish mutual
funds. The State Bank of India established the first non-UTI Mutual Fund, SBI Mutual Fundin November 1987. This was followed by Canbank Mutual Fund, LIC Mutual Fund, IndianBank Mutual Fund, Bank of India Mutual Fund, GIC Mutual Fund and PNB Mutual Fund.From 1987-88 to 1992-93, the AUM increased from Rs 6,700 crores to Rs 47,004 crores,nearly seven times. During this period, investors showed a marked interest in mutual funds,allocating a larger part of their savings to investments in the funds.
Phase III (March 1993- February 2003): Entry of Private Sector Funds and SEBI
Regulations
A new era in the mutual fund industry began in 1993 with the permission granted for theentry of private sector funds. This gave the Indian investors a broader choice of 'fund
families' and increasing competition to the existing public sector funds. Quite significantly
foreign fund management companies were also allowed to operate mutual funds, most of
them coming into India through their joint ventures with Indian promoters. The private funds
have brought in with them latest product innovations, investment management techniques and
investor-servicing technologies. In 1993 the first Mutual Fund Regulations came into being,
under which all mutual funds, except UTI were to be registered and governed. The erstwhile
Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual
fund registered in July 1993.
Since 1996, the mutual fund industry scaled newer heights in terms of mobilization of fundsand number of players. Deregulation and liberalization of the Indian economy had introduced
competition and provided impetus to the growth of the industry. A comprehensive set of
regulations for all mutual funds operating in India was introduced with SEBI (Mutual Fund)
Regulations, 1996. These regulations set uniform standards for all funds. Erstwhile UTI
voluntarily adopted SEBI guidelines for its new schemes. Similarly, the budget of the Union
government in 1999 took a big step in exempting all mutual fund dividends from income tax
in the hands of the investors. During this phase, both SEBI and Association of Mutual Funds
of India (AMFI) launched Investor Awareness Programme aimed at educating the investors
about investing through MFs. The number of mutual fund houses went on increasing, with
many foreign mutual funds setting up funds in India and also the industry has witnessed
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several mergers and acquisitions. As at the end of January 2003, there were 33 mutual funds
with total assets of Rs. 1, 21,805 crores.
Phase IV (February 2003-Up to date): Growth and Uniform Industry
In February 2003, the UTI Act was repealed. UTI no longer has a special legal status as a
trust established by an act of Parliament. Instead it has adopted the same structure as any
other fund in India - a trust and an AMC. While UTI functioned under a separate law of the
Indian Parliament earlier, UTI Mutual Fund is now under the SEBI's (Mutual Funds)
Regulations, 1996 like all other mutual funds in India. The emergence of a uniform industry
with the same structure, operations and regulations make it easier for distributors and
investors to deal with any fund house. Between 1999 and 2005 the size of the industry has
doubled in terms of AUM which have gone from above Rs 68,000 crores to over Rs 1,50,000
crores.
The industry has lately witnessed a spate of mergers and acquisitions, most recent ones being
the acquisition of schemes of Allianz Mutual Fund by Birla Sun Life, PNB Mutual Fund by
Principal, among others. At the same time, more international players continue to enter India
including Fidelity, one of the largest funds in the world.
ASSIGNMENT C
Multiple Choice1 B 9 A 17 D 25 D 33 C
2 D 10 A 18 C 26 B 34 B
3 D 11 D 19 D 27 D 35 C
4 C 12 A 20 C 28 C 36 D
5 B 13 B 21 A 29 B 37 A
6 C 14 A 22 C 30 C 38 C
7 A 15 A 23 B 31 A 39 A
8 B 16 A 24 C 32 D 40 A