GROWTHOFMUTUALFUNDSININDIA.PPT

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GROWTH OF MUTUAL FUNDS IN INDIA
BY, MUSTAFAPSMO_at_GMAIL.COM
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INTRODUCTION
A mutual fund is a trust that pools the savings
of a number of investors with common financial
goals.

• The collected money is invested in various
  instruments like debentures, shares, etc.
• The income generated from these instruments and
  the capital appreciation is shared by the
  investors in proportion to the number of units
  owned by them

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Mutual Fund Operation Flow Chart
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History of Mutual Fund

• The concept of mutual fund by UTI in the year
  1963. Though the growth was slow, but it
  accelerated from the year 1987 when non-UTI
  players entered the industry.
• The mutual fund industry can be broadly put into
  four phases according to the development of the
  sector.

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• First Phase - 1964-87
• Unit Trust of India (UTI) was established on 1963
  by an Act of Parliament.
• The first scheme launched by UTI was Unit Scheme
  1964.
• In 1978 UTI was de-linked from the RBI and the
  Industrial Development Bank of India (IDBI) took
  over the regulatory and administrative control in
  place of RBI.
• At the end of 1988 UTI had Rs.6,700 crores of
  assets under management.

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• Second Phase - 1987-1993 (Entry of Public Sector
  Funds)
• SBI Mutual Fund was the first followed by Canbank
  Mutual Fund (Dec 1987)
• Punjab National Bank Mutual Fund (Aug 1989),
  Indian Bank Mutual Fund (Nov1989).
• Bank of India (Jun 1990), LIC in 1989 and GIC in
  1990.
• Bank of Baroda Mutual Fund (Oct 1992).
• The end of 1993 marked Rs.47,004 as assets under
  management.

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• Third Phase - 1993-2003 (Entry of Private Sector
  Funds)
• A new era started in the Indian mutual fund
  industry, With the entry of private sector funds
  in 1993
• The erstwhile Kothari Pioneer (now merged with
  Franklin Templeton) was the first private sector
  mutual fund registered in July 1993.
• The 1993 SEBI (Mutual Fund) Regulations were
  substituted by a more comprehensive and revised
  Mutual Fund Regulations in 1996
• At the end of January 2003, there were 33 mutual
  funds with total assets of Rs. 1,21,805 crore.
• The Unit Trust of India with Rs.44,541 crore
  (Asset value)

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• Fourth Phase - since February 2003
• This phase had bitter experience for UTI. It was
  bifurcated into two separate entities. One is the
  Specified Undertaking of the Unit Trust of India
  with AUM of Rs.29,835 crores (as on January
  2003).
• The second is the UTI Mutual Fund Ltd, sponsored
  by SBI, PNB, BOB and LIC. It is registered with
  SEBI and functions under the Mutual Fund
  Regulations.
• With the bifurcation of the erstwhile UTI which
  had in March 2000 more than Rs.76,000 crores of
  AUM and with the setting up of a UTI Mutual Fund,
  

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Organization of Mutual Funds in India
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Types of mutual funds

• By structure
• Open-ended funds
• Close-ended funds
• Interval
• By Investment objective
• Growth funds
• Income funds
• Balanced funds
• Money market funds

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CONT..

• Other schemes
• Tax saving schemes
• Special schemes
• Index funds
• Sector specific schemes

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Association of Mutual Funds in India (AMFI)

• Association of Mutual Funds in India (AMFI) was
  incorporated on 22nd August, 1995.
• AMFI is an apex body of all Asset Management
  Companies (AMC) which has been registered with
  SEBI.
• AMFI has brought down the Indian Mutual Fund
  Industry to a professional and healthy market
  with ethical lines
• enhancing and maintaining standards.
• It follows the principle of both protecting and
  promoting the interests of mutual funds as well
  as their unit holders.

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OBJECTIVES OF AMFI

• It recommends and promotes the top class
  business practices and code of conduct.
• AMFI interacts with SEBI and works according to
  SEBIs guidelines in the mutual fund industry.
• AMFI represent the Government of India, the RBI a
  and other related bodies on matters relating to
  the Mutual Fund Industry.
• It develops a team of well qualified and trained
  Agent distributors.
• AMFI undertakes all India awareness programme.

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Why choose Mutual Funds?

• Affordability
• Professional management
• Diversification
• Convenience
• Liquidity
• Tax breaks
• Transparency

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Drawbacks of Mutual Funds

• No Guarantees
• Fees and commissions
• Taxes
• Management risk

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THANKS
THANKS
MUSTAFAPSMO_at_GMAIL.COM