Mutul Funds
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Transcript of Mutul Funds
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FUNDS
SAMRITI GOELMBA LECTURER
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Contents Of
Presentation What are mutual funds
History of mutual funds
Types of mutual funds Advantages of mutual funds
Disadvantages of mutual funds
Future of mutual funds
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MEANING OF MUTUAL
FUNDS A Mutual Fund is a financial service that
receives money from public and invests it
in stock market and give return to theinvestor on the behalf of their risk.In breifwe can say that mutual funds is a processto invest the money in stock market
indirectly.The service provider company ofmutual funds invest money in stockmarket by the advice of their fundmanager.
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HISTORY OF MUTUAL
FUNDSIt is divided intoFIVEphases
1) 1963-1987 the UTI was solo player created by parliament act in 1963 first product was unit scheme managed assets of Rs.6700 crore
1) 1987-1993 SBI entered in this segment By the end total asset of UTI were Rs.38247
crore and that of SBI were Rs.8750 crore
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3. 1993-1996 Mutual fund industry was open for both
foreign and private sector.
SEBIs first set of regulations was set in 1993and revised in 1996.
3. 1996-1999 the implementation of SEBIs new
regulations.
Bank mutual funds were recast accordingSEBI recommended structure.
3. 1999-2007 Very rapid growth in the industry Many private players came in the market
Almost 36 AMCs with over 500k cr AUM.
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TYPES OF MUTUAL
FUNDSMutual funds offer further general choices to the investors in terms of
1) According to the scheme of operation
Open ended-These are funds that youcan buy and sell anytime throughout the
year.
Close ended-These are funds that areopen only for a specific period after which
youd have to buy them from the secondarymarket. For e.g. NFOs.
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2) According to location Domestic funds -These are the
funds which mobilise savings of people
within the country where investmentsare made.
Off-shore funds - Off-shore mutualfunds are those which raise or
mobilise funds in countries other thanwhere investments are to bemade.These funds attract foreignsavings for investment in India.
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ADVANTAGES Portfolio diversification
Professional management
Reduced risk
Liquidity
Tax benefit Choice of schemes
Higher returns
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DISADVANTAGES Liquidity crisis
Lack of innovation
Conventional pattern of investment
No guarantee
Poor risk management
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FUTURE OF MUTUAL FUNDS
IN INDIA By June 2007, Indian mutual fund industry reached Rs
1,50,537 crore ,and it is estimated to reach Rs40,90,000 crore by Dec 2015.Present AUM is overRs.500k crore.
We have approximately 36 mutual funds which ismuch less than US having more than 800. There is abig scope for expansion.
100% growth in the last 6 years.
Number of foreign AMC's are in the que to enter theIndian markets.
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MAJOR MARKET
PLAYERS UTI MUTUAL FUNDS PRUDENTIAL ICICI MUTUAL FUNDS RELIANCE MUTUAL FUNDS
HDFC MUTUAL FUNDS FRANKLIN TEMPLETON MUTUAL FUNDS BIRLA SUN LIFE MUTUAL FUNDS SBI MUTUAL FUNDS KOTAK MAHINDRA MUTUAL FUNDS
TATA MUTUAL FUNDS HSBC MUTUAL FUNDS
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THANK YOU