Mutual Funds

An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual funds are operated by Fund managers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus.

A mutual fund is vehicle to invest in stock market, Debt securities and other assets like gold, real state etc. When an investor invests in Mutual funds he actually becomes part owner of that fund.

What is Mutual Funds?

Mutual funds are a vehicle to mobilize moneys from investors, to invest in different markets and securities, in line with the investment objectives agreed upon, between the mutual fund and the investors.

An ordinary person, who cannot devote time and can’t invest much money in Stock market  and Debt market  but he want to invest in such tools which can give him good returns after taxation and can beat inflation and Fixed instrument’s returns. Mutual fund is for those people who want professional management of their investments from a well professional team without devoting very much time and money. An investor can invest in Mutual fund from Month on month basis from its Systematic Investment Plan.

Concept of Mutual Fund

Mutual funds are a vehicle to mobilize moneys from investors,to invest in different markets and securities, in line with the investment objectives agreed upon, between the mutual fund and the investors.
Role of Mutual Fund
» To assist investors in earning an income or building their wealth.
» Benefits governments, companies or other entities, directly or indirectly, to raise moneys.
» The mutual funds can keep a check on the operations of the investee company.
» It promotes economic development and nation building.
» A key participant in the capital market of any economy.
Profitability metric
(A) Interest income
(B) + Dividend income
(C) + Realized capital gains
(D) + Valuation gains
(E) – Realized capital losses
(F) – Valuation losses
(G) – Scheme expenses
The true worth of a unit of the scheme is otherwise called
» Professional Management
» Portfolio Diversification
» Economies of Scale
» Liquidity
» Tax Deferral
» Tax benefits
» Convenient Options
» Investment Comfort
» Regulatory Comfort
» Systematic approach to investments
» Open-ended funds are open for investors to enter or exit at any time, even after the NFO.
» Close-ended funds have a fixed maturity. Investors can buy units of a close‐ended scheme, from the fund, only during its NFO.
» Interval funds combine features of both open-ended and close-ended schemes. They are largely close‐ended, but become open‐ended at pre‐specified intervals.
» Actively Managed Funds and Passive Funds.

1) Debt Funds
2) Equity Funds
3) Hybrid Funds

Other Funds

• Gold Funds
• Gold Exchange Traded Fund
• Gold Sector Funds
• Real Estate Funds
• Commodity Funds ‐ Commodity ETF or Commodity SectorFunds
• International Funds
• Fund of Funds
• Exchange Traded Funds

Role of Regulators in India

» SEBI – Securities Exchange Board Of India
• SEBI regulates mutual funds, depositories, custodians and registrars& transfer agents in the country.
• The applicable guidelines for mutual funds are set out in SEBI (Mutual Funds) Regulations, 1996.
• Stock Exchanges are regulated by SEBI.

» RBI – Reserve Bank Of India
• RBI regulates the money market and foreign exchange market.

» SRO – Self Regulatory Organizations
• Eg ‐ Institute of Chartered Accountants of India (ICAI).
• Eg – NSE & BSE.

» AMFI – Association of Mutual Funds Of India
• AMCs in India are members of AMFI, an industry body that has been created to promote the interests of the mutual funds industry.

» Investment Mode :
• SIP, Lumpsum, SWP, STP Etc

Mutual Fund Companies in India

Name of the Asset Management Company


AIG Global Asset Management Company (India) Pvt. Ltd.

Axis Asset Management Company Ltd.

Baroda Pioneer Asset Management Company Limited

Birla Sun Life Asset Management Company Limited

BNP Paribas Asset Management India Private Limited

BOI AXA Investment Managers Private Limited

Canara Robeco Asset Management Company Limited

Daiwa Asset Management (India) Private Limited

Deutsche Asset Management (India) Pvt. Ltd.

DSP BlackRock Investment Managers Private Limited

Edelweiss Asset Management Limited

Escorts Asset Management Limited

FIL Fund Management Private Limited

Franklin Templeton Asset Management (India) Private Limited

Goldman Sachs Asset Management (India) Private Limited

HDFC Asset Management Company Limited

HSBC Asset Management (India) Private Ltd.

ICICI Prudential Asset Mgmt.Company Limited

IDBI Asset Management Ltd.

IDFC Asset Management Company Limited

India Infoline Asset Management Co. Ltd.

Indiabulls Asset Management Company Ltd.

ING Investment Management (India) Pvt. Ltd.

JM Financial Asset Management Private Limited

JPMorgan Asset Management India Pvt. Ltd.

Kotak Mahindra Asset Management Company Limited(KMAMCL)

L&T Investment Management Limited

LIC NOMURA Mutual Fund Asset Management Company Limited

Mirae Asset Global Investments (India) Pvt. Ltd.

Morgan Stanley Investment Management Pvt.Ltd.

Motilal Oswal Asset Management Company Limited

Peerless Funds Management Co. Ltd.

Pramerica Asset Managers Private Limited

Principal Pnb Asset Management Co. Pvt. Ltd.

Quantum Asset Management Company Private Limited

Reliance Capital Asset Management Ltd.

Religare Asset Management Company Limited

Sahara Asset Management Company Private Limited

SBI Funds Management Private Limited

Sundaram Asset Management Company Limited

Tata Asset Management Limited

Taurus Asset Management Company Limited

Union KBC Asset Management Company Private Limited

UTI Asset Management Company Ltd

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