P & L Account

Expenses 2019 2020 2021 2022 2023

Office Exp. 46,20,000 48,51,000 50,93,550 53,48,227.5 56,15,638.88

Salary 35,28,000 37,04,400 38,89,620 40,84,101 42,88,306.05

Commission 4,57,500 4,80,375 5,04,393.75 63,55,361.25 66,73,129.31

Total 86,05,500 90,35,775 94,87,563.75 1,57,87,689.8 1,65,77,074.2

Income 2019 2020 2021 2022 2023

Allowed Exp. 90,00,000 95,00,000 1,00,00,000 1,05,00,000 1,10,00,000

Loss/Profit -3,94,500 -4,64,225 -5,12,436.3 52,67,890 55,77,074.2

86,05,500 90,35,775 94,87,564 1,57,87,690 1,65,77,074.2

 The Regulation of Mutual Fund
• Transparency: The holdings of mutual funds are publicly available,
although there are sometimes delays in reporting. This ensures that
investors are getting what they pay for.
• Liquidity: Shares of mutual funds are redeemed by the fund
company on the trade date, and this ensures daily liquidity for
investors.
• Audited Track Records: Funds must maintain their performance
track records and they're audited for accuracy so investors can trust
the fund’s stated returns.
• Safety: Fund shareholders receive an amount of cash that equals
their portion of ownership in the fund when a mutual fund
company goes out of business. Alternatively, the fund’s board of
directors might elect a new investment adviser to manage the
funds.
 Balance Sheet
LIABILITIES 2019 2020 2021 2022 2023
Shareholder’s 2,20,00,000 2,31,00,000 2,42,55,000 2,54,67,750 2,67,41,138
Fund
Short-term 6,00,000 6,12,000 6,24,240 6,36,754.8 6,49,459.3
Provision
Long-term 21,00,000 21,84,000 22,71,360 23,62,214 24,56,703
Provision
2,47,00,000 2,58,96,000 2,71,50,600 2,84,66,688.8 2,98,47,300.3
ASSETS 2019 2020 2021 2022 2023
Furniture's 40,75,000 41,97,250 43,23,167.5 44,52,862.5 45,86,448.4
Cash in hand 1,45,25,000 1,54,53,750 1,56,82,873 1,58,03,772 1,57,86,740
Cash at bank 21,00,000 21,84,000 22,71,360 23,62,214.4 24,56,703
Licences and 40,00,000 40,00,000 48,73,199 58,47,840 70,71,408
Permits(Trade
Assets)
2,47,00,000 2,58,96,000 2,71,50,599.5 2,84,66,688.9 2,98,47,299.4
 New rules as per SEBI issued for
Mutual Fund Industry
• All liquid schemes have to hold at least 20 per cent in liquid assets such as
cash, government securities
• A debt scheme can only invest up to 20 per cent of its assets in one sector.
The sectorial cap was previously higher at 25 per cent. Also, the additional
exposure of 15 per cent to housing finance companies (HFCs) has been
restructured to 10 per cent in HFCs and 5 per cent exposure in securitized
debt based on retail housing loan and affordable housing loan portfolios.
• Liquid and overnight schemes will no longer be permitted to invest in
short-term deposits, debt and money market instruments having
structured obligations or credit enhancements.
• A graded exit load will be levied on investors of liquid schemes who exit
the scheme up to a period of seven days.
• MF schemes will now be mandated to invest only in listed non-convertible
debenture (NCDs). In addition, all fresh investments in commercial papers
(CPs) and equity shares will only be allowed in listed securities pursuant to
issuance of guidelines by the regulator.
 Licenses
• As per Regulation 7 of SEBI (Mutual Funds) Regulations, 1996- the
sponsor contributes at least 40% to the net worth of the AMC.
• Appointment of a custodian in order to keep custody of the
securities and carry out the custodian activities as may be
authorized by the trustees.
• The registration in form A prescribed under Schedule I of SEBI
(Mutual Funds) Regulations 1996. It may be noted here that as per
the proviso to Reg. 7 (c) of the Regulations, any person who holds
40% or more of the net worth of an asset management company
shall be deemed to be a sponsor and will be required to apply in
Form A along with non-refundable fee INR 5 lakh.
• NISM(National Institute of Securities Markets) Certification.