MUTUAL FUND

INDUSTRUY

By: Anil Sevak

MBA I
Roll no.O3
MEANING OFMUTUAL FUND

 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
History OF MUTUAL FUND IN
INDIA

First Phase : 1964-1987 ( 6700 Cr. Assets under
mangt)

 Second Phase : 1987-1993 (47004 cr. Assets

under mangt)
(entry of public sector funds)

 Third Phase : 1993-2003 (1,21,805 cr.Assets

under mangt)
(Entry of private sector funds)
 Forth phase : since 2003 ( 1 39 108 Assets under
mangt)
FUTURE OF INDIAN MUTUAL
FUND INDUSTRY
 By December 2004, Indian mutual fund
industry reached Rs 1,50,537 crore.

 It is estimated that by 2010 March-end,

the total assets of all scheduled
commercial banks should be Rs
40,90,000 crore.
GROWTH IN ASSETS UNDER MANAGEMENT
Contd…..
 The annual composite rate of growth is
expected 13.4% during the rest of the
decade.

 In the last 5 years we have seen annual

growth rate of 9%.

 According to the current growth rate, by year

2010 mutual fund assets will be double.
Some facts for the growth of mutual
funds in India
 100% growth in the last 6 years.

 Our saving rate is over 23%, highest in the

world. Only canalizing these savings in
mutual funds sector is required.

 We have 33 mutual funds ( US more than

800.) There is a big scope for expansion.
Advantages of Mutual Funds:
 Diversification

 Professional management

 Financial return

 Convenience

 Liquidity

 Regulatory oversight
Disadvantages of Mutual
Funds:
 No guarantees

 Fees & commission

 Taxes

 Management risk
Mutual fund Operation
Net Asset Value (NAV)
 Current value of all securities held in
fund’s portfolio.

NAV =
Net investment of the scheme
Number of units outstanding
Types of Mutual Funds:

o Open Ended Scheme

 Closed ended Scheme
 Fixed income funds
 Equity Funds
 Balance Funds
Sector Funds
Money Market funds
 Global Scenario
 The global mutual fund¬ industry
has grown by 185 per cent
.
between 2000 and 2006.

 India 446%

 US and Europe grew by 158 and

242 per cent respectively
 Cont……
 Today the industry stand at $ 24.32 trillion (September
2007; source: ICI),
out of which 41 per cent of the assets is in equity.

 Looking at the continent-wise asset breakdown, America

leads by 51 per cent, while Europe is at 35 per cent and
Asia-Pacific is at 10 per cent.

 Investment advisors have played a vital role in

instilling investor’s confidence in mutual funds.
Making Mutual Fund
Investments
Selecting a Mutual Fund:
 Match the fund's objectives with your
investment objectives.
 Consider your tolerance for risk and your
investment time horizon.
 Read the prospectus!
 Meaning of Mutual Fund?

 What is NAV ? How it is calculated ?

 First private firm entered in M.F. Industry?

 Advantages of Mutual Fund.