N D

FU
A L
T U
U
M

BY,
PRASHANT VIRGHIS-069
RAMANDEEP SINGH-081
RISHINATH SINGH-087
SANDEEP RAJ-092
SHANTANU SETH-096
SHRIKER PARTH-100
FABIAN
 Mutual Fund-What is it?

 A Mutual Fund is a trust that pools the savings of a number of

investors who share a common financial goal.

 The money thus collected is then invested in capital market

instruments such as shares, debentures and other securities.

 The income earned through these investments and the capital

appreciation realized are shared by its unit holders in proportion
to the number of units owned by them.

 Thus a Mutual Fund is the 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.
The growth of mutual funds
Organizational set up of mutual fund
Working of Mutual Fund
 The journey so far…….

 The first scheme launched by UTI was unit scheme 1964.

 1st phase (1964-87) – UTI

 2nd Phase (1987-93)- Entry of public sector
 3rd Phase (1993-2003)- Entry of private sectors
 4th Phase (2003-) - Present
Types of Mutual Funds Schemes in
India: By investment objective
Growth Schemes
Income Schemes
Balanced Schemes
Money Market Schemes
Tax Saving Schemes
Index Schemes
Sector Specific Schemes
THE PEST ANALYSIS
 Political Analysis

 In India, SEBI (Mutual Fund) Regulations, 1996 regulates the structure of

mutual funds.
 Mutual funds in India are constituted in the form of a Public Trust created
under The Indian Trusts Act, 1882.
 The stability of the government and people faith into it acts as an important
return factor.
 The impact of foreign investment.
• Forced renegotiation of contracts

• A requirement that a minimum percentage of supervisory positions be held by

locals.
 Economic analysis

 India's population is young, with 54% under the age of 25

and 80% under 45 and the percentage of working
population is rising rapidly.
 If we see the position of BSE Senex as compared to other
major indexes in the world then we find that BSE has been
the best performer.
 India – Potential 'Services Capital' of the World-With
services becoming increasingly tradable, India is well
placed in terms of costs and skill sets and over the past 13
years.
 Economic Analysis-Contd.

 Inflation affects the Return-Inflation has always lowered

the actual return from bank savings except the year 2002
 Impact of Various Changes-With the increase in global
trade and finance, there is a need for level playing field as
the WTO has laid down common rules to facilitate smooth
trade among member countries irrespective of their size.
 Socio-cultural analysis

 The most important factor shaping in today's global

economy is the process of globalization.
 The increasing share of India and other emerging market
economies in world trade.
 To fund future needs, To meet contingencies, To maintain
same standard of living after retirement .
 Standard of living of population tends to improve.
 Technological analysis

 Indian companies are moving in search of low-cost markets,

technology is driving growth in production and competition is
becoming more intense.
 The outburst in communication technology has led to greater
integration of Indian financial markets across the world.
 The outburst of technology has made it possible for the
foreign companies to look for Indian market and returns
associated with it.
 All the legal framework and associated work has become easy
to handle
 Challenges ahead……

 Widen range of products with affordable and competitive

schemes to tap the market.
 Needs to collaborate with other sectors of the economy
such as banking and telecommunications.
 Companies are also required to take advantage of the
growing opportunity in the commodities market. Further, the
mutual funds could also enable the small investors to
participate in the real estate boom through real estate
mutual funds.
 With a strong regulatory framework, clear guidelines and
the talent to back it up, the Indian mutual fund industry is in
a position to cater to the new breed of investors who are
keen to diversify their risks
 Types of risks

Management Risk
Purchasing Power Risk
Currency Risk
Market Risk
Sector Risk
Liquidity Risk
Interest Rate Risk