Professional Documents
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A II year
Concept
UTI remained a monopoly until 1987 after which government controlled banks established mutual funds followed by the insurance companies.
SEBI (Mutual Funds) Regulations 1993 has also provided for the fair functioning of mutual funds by prescribing disclosure and advertising norms and that the fund sponsor, trustees, custodian and asset management company (AMC) must have an arms length relationship. During 1964 1987, when UTI was the only mutual fund in India, it mobilised 45.63 billion.
2002 - 2003
45.80
Mutual funds are sine qua non for the development of capital markets and the creation of the equity cult in an economy.
Various kinds of funds are possible within these two categories: Income funds They have the primary objective of a high current return, and investment is made in portfolios of high yielding shares. Growth funds They aim for capital gains and hence invest large proportion of their funds in equity shares with high growth potential. Balanced funds They combine the objectives of earning current income and capital appreciation. So, their portfolio consists of both equities and bonds. Taxes saving funds They are targeted to investors in high tax brackets. Income for these funds is tax exempt. Sector based funds Mutual funds may offer opportunities to investors to invest in the securities of specific sectors. For example, mutual funds have made available several sector based funds like Infrastructure, Technology, and Pharmaceutical to investors.