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

Advantages

» Professional Management
» Portfolio Diversification
» Economies of Scale
» Liquidity
» Tax Deferral
» Tax benefits
» Convenient Options
» Investment Comfort
» Regulatory Comfort
» Systematic approach to investments

Types

» 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	Website
AIG Global Asset Management Company (India) Pvt. Ltd.	www.aiginvestments.co.in
Axis Asset Management Company Ltd.	www.axismf.com
Baroda Pioneer Asset Management Company Limited	www.barodapioneer.in
Birla Sun Life Asset Management Company Limited	www.birlasunlife.com
BNP Paribas Asset Management India Private Limited	www.bnpparibasmf.in
BOI AXA Investment Managers Private Limited	www.boiaxa-im.com
Canara Robeco Asset Management Company Limited	www.canararobeco.com
Daiwa Asset Management (India) Private Limited	www.daiwafunds.in
Deutsche Asset Management (India) Pvt. Ltd.	www.dws-india.com
DSP BlackRock Investment Managers Private Limited	www.dspblackrock.com
Edelweiss Asset Management Limited	www.edelweissmf.com
Escorts Asset Management Limited	www.escortsmutual.com
FIL Fund Management Private Limited	fidelity.co.in
Franklin Templeton Asset Management (India) Private Limited	www.franklintempletonindia.com
Goldman Sachs Asset Management (India) Private Limited	www.gsam.in
HDFC Asset Management Company Limited	www.hdfcfund.com
HSBC Asset Management (India) Private Ltd.	www.assetmanagement.hsbc.com/in
ICICI Prudential Asset Mgmt.Company Limited	www.icicipruamc.com
IDBI Asset Management Ltd.	www.idbimutual.co.in
IDFC Asset Management Company Limited	www.idfcmf.com
India Infoline Asset Management Co. Ltd.	www.iiflmf.com
Indiabulls Asset Management Company Ltd.	www.indiabullsmf.com
ING Investment Management (India) Pvt. Ltd.	www.ingim.co.in
JM Financial Asset Management Private Limited	www.jmfinancialmf.com
JPMorgan Asset Management India Pvt. Ltd.	www.jpmorganmf.com
Kotak Mahindra Asset Management Company Limited(KMAMCL)	www.kotakmutual.com
L&T Investment Management Limited	www.lntmf.com
LIC NOMURA Mutual Fund Asset Management Company Limited	www.licnomuramf.com
Mirae Asset Global Investments (India) Pvt. Ltd.	www.miraeassetmf.co.in
Morgan Stanley Investment Management Pvt.Ltd.	www.morganstanley.com/indiamf
Motilal Oswal Asset Management Company Limited	www.motilaloswal.com/assetmanagement/
Peerless Funds Management Co. Ltd.	www.peerlessmf.co.in
Pramerica Asset Managers Private Limited	www.pramericamf.com
Principal Pnb Asset Management Co. Pvt. Ltd.	www.principalindia.com
Quantum Asset Management Company Private Limited	www.QuantumAMC.com
Reliance Capital Asset Management Ltd.	www.reliancemutual.com
Religare Asset Management Company Limited	www.religaremf.com
Sahara Asset Management Company Private Limited	www.saharamutual.com
SBI Funds Management Private Limited	www.sbimf.com
Sundaram Asset Management Company Limited	www.sundarammutual.com
Tata Asset Management Limited	www.tatamutualfund.com
Taurus Asset Management Company Limited	www.taurusmutualfund.com
Union KBC Asset Management Company Private Limited	www.unionkbc.com
UTI Asset Management Company Ltd	www.utimf.com