Customer Relationship Management

Financial services managementMutual FundsDefinition of mutual fundMutual Fund is a corporation which accepts money from investors and uses the same, long term bonds and short term debt instruments issues by issuers.Mutual Fund V/s SharesMeaningVoting RightsRisk and EffectSuitabilityNatureChargesOfferingController

Parties in mutual fundSponsorsMutual FundsTrusteeAsset Management CompanyRegistrar and transfer agentsDistributors/AgentsBankerCustodian

Types of Mutual FundsFunctional ClassificationOpen-End FundClose-end FundGeographical ClassificationDomestic Mutual FundOff-Shore Mutual FundInvestment objectivesMoney Market Mutual FundsBalanced FundsIndex FundsLeverage FundsEquity FundsGilt FundsLoad funds and Non-load fundsTax Saving FundsSector-specific FundsReal Estate Mutual Funds (REMF)

Advantages of mutual fundsChannelising savings for InvestmentProfessional ManagementDiversity InvestmentReturn Potential Reduce transaction costMutual funds are highly liquidGovernment RegulationFlexibilityInformationTax BenefitsSupporting capitalKeeping money market active

Disadvantages of mutual fundsDepend on professional managersNo control over costsVarious expensesNo tailor-made portfoliosDifficulty in selection of funds

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