MUTUAL FUNDS

Submitted to : Prof.Padmini Sundaram

By
Amulya Reddy (15020241018)
Shantanu Jadhav(15020241104)
Shahan Tamboli(15020241103)
Sibi Alex(15020241110)

Date : 9/9/16

MUTUAL FUNDS
An investment vehicle that allows several investors to pool
their resources in order to purchase stocks, bonds and other
securities

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EVOLUTION

Began in1963
SBI mutual fund, 1987
SEBI Act was passed in 1992
SEBI Mutual Fund Regulations, 1996
Association of Mutual Funds in India
(AMFI), 1995

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ORGANIZATION STRUCTURE

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SEBI Regulations

Formation
Registration
Documents
Code of advertisement
Assurance of Returns
Valuation of investment
Inspection

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Mutual Fund Operation

Flow Chart

REASONS TO INVEST

RISK FACTORS OF MUTUAL

FUNDS

Asset Management
Company

The trustees appoint the Asset Management Company (AMC) with the
prior approval of SEBI.
The AMC is a company formed and registered under the Companies Act,
1956.
It charges a fee for the services it renders to the mutual fund trust.
The AMC of a mutual fund must have a net worth of at least Rs 10 crore at
all times and this net worth should be in the form of cash.
It cannot act as a trustee of any other mutual fund. It is required to disclose
the scheme particulars and base of calculation of NAV
At least 50% of the directors of the board of AMC should not be
associated with the sponsor or its subsidiaries or the trustees.

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SEBI (Mutual Funds) Regulations, 1996 The provision of

this regulation pertaining to AMC are:

The mutual fund shall appoint a Custodian to carry out the custodial services
for the schemes of the fund and sent intimation of the same to the Board within
fifteen days of the appointment of the Custodian.

The asset management company shall not carry out its operations including
trading desk, unit holder servicing and investment operations outside the
territory of India .

An asset management company shall not utilise the services of the sponsor or
any of its associates, employees or their relatives, for the purpose of any
securities transaction and distribution and sale of securities .

No guaranteed return shall be provided in a scheme, (a) unless such returns

are fully guaranteed by the sponsor or the asset management company; (b)
unless a statement indicating the name of the person who will guarantee the
return, is made in the offer document; (c) the manner in which the guarantee is
to be met has been stated in the offer document.

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All the schemes to be launched by the AMC need to be approved by the trustees
and copies of offer documents of such schemes are to be filed with SEBI.

The listing of close-ended schemes is mandatory and every close-ended scheme

should be listed on a recognised stock exchange within six months from the
closure of subscription.
However, listing is not mandatory in case if the scheme opens for repurchase
within six months.
Units of a close-ended scheme can be opened for sale or redemption at a
predetermined fixed interval if the minimum and maximum amount of sale,
redemption, and periodicity is disclosed in the offer document.
Units of a close-ended scheme can also be converted into an open-ended scheme
with the consent of a majority of the unit-holders.

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Type of
Mutual Fund
Schemes
Structure

Special
Schemes

Investment
Objective

Open Ended
Funds

Growth Funds

Industry Specific
Schemes

Close Ended
Funds

Income Funds

Index
Schemes

Interval Funds

Balanced Funds

Sectoral
Schemes

Money Market
Funds

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5 Ways To Measure Mutual Fund Risk

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CRISIL - AMFI Equity Fund Performance Index

CRISIL - AMFI Equity Fund Performance Index seeks to track the performance of
the equity funds. The index consist of mutual fund schemes from diversified
equity, large cap equity and small and mid-cap equity categories.

Features
Base date for the Index: April 01, 1997
Total Return Index adjusted for corporate action in mutual fund schemes
Index portfolio marked-to-market on a daily basis using adjusted Net Asset Value
(NAV)
Equity funds which are ranked under CRISIL Mutual Fund ranking are part of the
index
Index values are calculated on daily basis using chain-link method
Derived index from the following sub-indices
CRISIL - AMFI Large Cap Fund Performance Index
CRISIL - AMFI Diversified Equity Fund Performance Index
CRISIL - AMFI Small & Midcap Fund Performance Index

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How to buy funds.

Direct Plan
Targeted at investors who do not make
their mutual fund investments through
distributors
Will not charge distribution expenses or
commission
Resulting in these plans having lower
annual charges
Higher NAV compared to the regular
plans.

 Through intermediaries
include most banks, distribution
companies, some stock brokers, and a
large number of individuals and small
financial advisory companies.
registered with the Association of Mutual
Fund in India (AMFI)
brings the required mutual fund
application form
Agent fees

 Through Demat and Online Trading

Account
Through IFAs
individuals who act as agents to facilitate a
mutual fund investment.

Directly with the AMC

you may have to go to the AMC's office to
make your investment initially.
Subsequent investments in different fund
schemes of the same AMC can be made
online or offline (folio no: )

How to redeem.
Redemption if purchased
through the AMC or Distributors
Duly signed redemption request to the
AMC
All holders should duly sign
A standard redemption form asks

Name
folio number
plan and scheme details
number of units you wish to redeem

 Redemption if bought online

online through a trading account
AMCs website
select the fund
the number of units you wish to redeem
confirm your order.

Points To Remember
Applicable NAV
redemption request before 3:00 pm, the same
day closing NAV will be applicable

Turnaround Time
it takes up to three working days for the
proceeds to be credited to the registered bank
account.

Funds With Lock-In Period

open-ended schemes can be redeemed anytime

Exit Loads and Applicable Taxes

your transaction might attract certain amount of
taxes and exit loads

Reliance Top 200 Fund

ICICI Prudential Focused Blue-chip

Equity Fund

 SBI Blue-chip Fund Regular Growth

Thank
You
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