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TopicMutual Fund And Its TrendBy :Abhishek SagarProf. Manisha MishraTo :Chintan M Shingala

Introduction A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal.

The money collected is invested in capital market instruments such as shares, debentures etc. The income earned through these investments and the capital appreciation realized are shared by its unit holders.

The income earned is shared in proportion to the number of units owned by them.

It is most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost.

Emergence of Mutual Fund in IndiaMutual funds in India began in 1964

Unit Trust of India (UTI) was the first MF company Remains the market leader even today, Having about 68% of the market share

Lost monopoly in 1987 With entry of public sector mutual funds Promoted by public sector banks and insurance companies

Industry was open to foreign institutions in 1993

Trends Of Mutual Fund In IndiaIn 1963, finance minister Shri T. Krishnaswami gave the idea of mutual funds.

The origin of mutual fund industry in India is with the introduction of the concept of mutual fund by UTI in the year 1963.

The first scheme launched by UTI was Unit Scheme in 1964.

At the end of 1988 UTI had Rs.6,700 crores of assets under management.

Though the growth was slow, but it accelerated from the year 1987 when non-UTI players entered the industry.

SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987 followed by:-Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92)

The private sector entry to the MF rose the AUM to Rs. 470 bn in March 1993.

The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996.

The industry now functions under the SEBI (Mutual Fund) Regulations 1996.

The number of mutual fund houses went on increasing, with many foreign mutual funds setting up funds in India. The industry has also witnessed several mergers and acquisitions.

At the end of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805 crores.

The Unit Trust of India was having highest Rs.44,541 crores of assets under management in year 2003.

SEBI Removed Entry Load in MF on 1 August, 2009Introduction of Purchase/Sale facility through Stock Exchanges November, 2009National Stock Exchange (NSE) launched India's first Mutual Fund Service System (MFSS) on November 30, 2009 through which an investor can subscribe or redeem units of a mutual fund scheme

Schemes of Mutual Fund

Process of Mutual FundPool their money withInvest inGenerates Pass it to

Investment Avenues of Mutual Fund

Regulatory Body of Mutual FundAMFI (Association of Mutual Fund in India), the apex body of all the registered Asset Management Companies.Was incorporated on August 22, 1995, as a non-profit organisation.As of now, all the 47 Asset Management Companies that are registered with SEBI, are its members.

Valuation of NAV

Value of the Assets Value of LiabilitiesNAV = -------------------------------------------------------Number of funds units

Top performing Mutual Funds

Canara Robeco Emerging Equities (G)

Overall volume of Mutual Fund till dateThe total volume of mutual fund till 2014 is 10,00,000 cr from which 7,00,000 cr is into Debt & 3,00,000 cr is into EquityReturn in Mutual Fund The total return in Debt is 11% and the total return in Equity is 50%

ConclusionMutual fund industry is one of the fastest growing industry in India and it has already established in foreign countries. Investing in Mutual Funds is more safe as compared to equity as well as it give handsome returns.

Sourceshttp://www.amfiindia.comhttp://www.investopedia.comhttp://www.moneycontrol.comOptima Money Manager

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