Projectsform be. blogspot.com UNIVERSITY OF MUMBAI PROJECT ON COMPARATIVE STUDY OF MUTUAL FUNDS IN INDIA SUBMITTED In Partial Fulfillment of the requirements For the Award of the Degree of Bachelor of Management BY PROJECT GUIDE BACHELOR OF MANAGEMENT STUDIES SEMESTER V (2009-10) V.E.S. COLLEGE OF ARTS, SCIENCE & COMMERCE, SINDHI SOCIETY, CHEMBUR, MUMBAI — 400071.Projectsform be. blogspot.com DECLARATION % . the student of Bachelor of Management Studies - Semester V (2009-10) hereby declare that I have completed this project on The information submitted is tru: & original to the best of my knowledge.Projectsform be. blogspot.com CERTIFICATE This is to certify that Mr or Bachelor of Management Studies - Semester V (2009-10) has successfully completed the project on under the guidance of Course Coordinator Principal Project Guide/ Internal Examiner External ExaminerProjectsform be. blogspot.com ACKNOWLEDGEMENT has been one of the significant academic challenges I have eed and without the support patie Joule not have been completed. It is to wisdom, knowledge, atid commitment to the highest standards inspired and motivated me.Profectsformba blogspot.com NEED FOR THE STUDY: Tt also helps in understanding different schemes of mutual funds. Because my study cation, entry toad, exit load, associated with the mutal funds. Ultimately this would help én understanding the benefits of OBJECTIVE: To give an ietea of the types of schemes availabe. The lack of information sources for the analysis part, + Though Tried to collect some primary data but they wore too inadequate for the purposes The ‘data’ provided by the prospects may not be 100% corrdet as they it6o! have theitProfectsformba blogspot.com EXECUTIVE SUMMERY Jor banks and financial institutions were allowed to Most mutual funds and thet company or through a third party. Before investing in any funds one should consider some factor Thére dre 'sniny, many ype OT Mauthell faba, You Gan amity finda! based \SerwemreProfectsformba blogspot.com lance mutual funding is considered to be most reliable mutual funds én India. Poop want to invest in this institution because they know that this institution will never dissatisfy then at any cost. You should always keep this inte your miad that i particular mutual funding schemeProjectsform be. blogspot.com INDEX SRNO. Torres Pace 1 INTRODUCTION OF MUTUAL FUND on 2. WORKING OF MUTUAL FUND 25 3 MUTUAL FUND IN INDIA a 4 | RELIANCE MUTUAL FUND ws. UTI MUTUAL FUND | 37 5 MUTUAL FUND vs. OTHER INVESTMENT oo «| FUTURE PROSPECT OF MUTUAL FUNDS IN o7 MF JARGON ox CONCLUSION “ BIBLOGRAPHY 70Projectsform be. blogspot.com Chapter: 1 INTRODUCTION OF MUTUAL FUN nvestor. These investors have found « good shelter with te mutual funds CONCEPT OF MUTUAL FUND:Profectsformba blogspot.com manage the funds provided by the investors and provide a return on them after deducting reasonable management fees manner that provides a repular income. growth, safety. liquidity and diversification DEFINITION: Aunt furrds are collective savings and investment weiclex where savings of smell (or comonmen big) investors are pooled 1oxethven to invext far thelr mutual benefit and returns The fund's ascers are invested wccording 1o-4n tnveciment objective into the fun He pontfolio of ressive growih funds seek lone perm capital growth bey inventing prtmeartty-in stocks of fast-growing smaller compantes or market segments. Aggressive grawth funds are also called eapiral appreciation fundsProjectsform be. blogspot.com HISTORY OF MUTUAL FUNDS IN INDIA: banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of IndiaProfectsformba blogspot.com setting up funds in India anel also the industey has withessed several merzers and acaut at the end of January 2003, there were 33 mutual finds with Cota! asset Of Rs, 1,21,805 crores EOQUBTH PHASE —SINCE FEBRUARY 2003: framed by Govemment of India and docs not come under the purview of the Mutual Fund September, 2004, there were 29 funds, which manaze asicts of Ra.1S3108 crores under 421Profectsformba blogspot.comProjectsform be. blogspot.com ADVANTAGES OF MUTUAL FUNDS: Ifmunial finds are emerging as the favorite investment vehicle, it ix because of the many 1. Portfolio Diversification: otherwise requite bis capital Few investors have the skill and resources of their own to succced in today's fast moving. etobal and sophisticated markets s. Reduction/Diversification OF Risk:Profectsformba blogspot.com 4. Reduction OF Transaction Costs: benefit of economies of scale: the finds pay lesser costs because of Inter volumes, & benef Liquidity: a © avenience And Flexibility: 7. ‘Tax Benenits: Any income distributed after March 31, 2002 will be subject to tax in the assessment of oriented funds, income distributions for the year ending March 31, 2003. wi be mixed at a inctading incorie fom Unite of the Mutual (Fund. Uaits of the sctiemes are nor subject 16 Wealth Tax and GiN-Tax 8. Choice of SenemesProjectsform be. blogspot.com 9. Welt Regutate reeulurly monitored by SEBL ‘Transparency: You eet rezular information on the value of your favestment én acdition to disclosure on the DISADVANTAGES OF INVESTING THROUGH MUTUAL, FUNDS: a. No Control Over Costs: ing. A mutual fund investor also pays find distribution costs, which he woul! not incur in 2. No Tailor-Made Portfo other securitics. Investing through flind means he delegates this decision to the find managers.Projectsform be. blogspot.com 3. Managing A Portfolio Or Funds: similar to the situation when he has individual shares or bonds to select, 4. ‘The Wisdom Of Professional Management: 5. No Control of somebody else's ear 6. Ditutio: 7. Buried Costs:Projectsformbe blogspot.com TYPES OF MUTUAL FUNDS SCHEMES IN INDIA, is 4 ete. thus imusnial funds hae Variety of favors, Being # collection of many stovks, an investors can go'for picking & mutual find might be-eaay. funds in categories. mentioned belew.Profectsformba blogspot.com A).BY STRUCTURE 1. Open - Ended Seh not have a fixed maturty. Investors can conveniently buy and sell unite at Net Asset Value 2. Close - Ended Schemes: through pettod purchase at NAV related prices. § 3. Interval Schemes Nenien are hat scheme. which combines the foxlures of open-ended and ctorProjectsform be. blogspot.com ®).BY NATURE 4. Equity Funa: These tnds invest & mmaxiiiun part of their corpus into Cquities Moldings. The senienite of the Rand may vary different fOr different schemes and the fund manager's outlook on dilleren Follows: © Mid-Cap Funds 2. Debt Funds: inveming in debt instruments, these fitida eniatire low risk and ‘provide Mable income to the Government of India debt paner. These Funds carry zero Defaule risk but are associatedProfectsformba blogspot.com = Short Term Plans (STPs): Meant for investment horizon for three te abe months. These = Liquid Funds: Also known as Money Market Schemes, These funds provides casy short-term cash management of corporate houses and are meant for an investment 3. Balanced Funds: ‘eauities snd. xed income sccusi S.which are in line with pre-defined énvestment objective of Further the mutual funds can be broudly: classified an the basis of investment parameter vt.Projectsform be. blogspot.com ©.BY INVESTMENT OBJECTIVE: Growth Schemes: provide capital appreciation over medium to long term. These schemes normally invest a maior future appreciation Income Schemes: febular and Mendy income 1 investors. These achemes ‘generally inves! ia fixed. income Balanced Scheme Money Market Schemes (© 2%. Iteould be worth paying the load. ithe fund has a good performance historyProfectsformba blogspot.com ‘Tax Saving Schemes: ‘Texcsaving schemes offer tax reblites to! the investors under tak laws prescribed trom time Index Scheme: Sensex oF the NSE 50. The portfolio of these schemes will consist of only those stocks that constitute the index. The percentage of cach stock te the total holding will be identical 1 the Sector Speci © Schemes: specified in the offer documents. ©. Pharmaceuticals. Software. Fast Moving Consumer GoodsProfectsformba blogspot.com NET ASSET VALUE (NAY): sascts of the flind when divided by the total number of unite issued by the mutual find gives us the walue of one unit, This #8 gencnilly called the Net Asset Value (NAY) of one unit or one anit hetd Calculation of NAN: investors who have bought 10 units each, the total numbers oF units issued are 100, and the value of one unit is Rs. 10.00 (1000/100). If 4 single investor in fact owns 3 unde, the value OF his lke to Muctuate, For example, ithe valuc of our fund's asset increased from Rs, 1000 £6 1200, now be (1200/1003) Rs, 36, The investmentProjectsform be. blogspot.com MUTUAL FUND FEES AND EXPENSES mutual Ginds. Running 4 mufial fund involves costs, including. sharchelder transaction coats, investment advisory fees, and marketing and distribution expenses. Funds pass along these costs 2: MEARE eee ) Purchase Fee: ox loud, @ purchase fee is paid to the fand (not to a bunker) and Redemption Fee: Wy) Exchange Fee: to another fund within the same fimd group oF ot tunds.” 2. PERIODIC FEES 9 Management Fee: investment adviser that are not included in the "Other Expenses" eategory. They are also called maintenance foes.Projectsform be. blogspot.com 4) Account Fee: Account feck are fees that some fuunds separately impose on investors in ‘Transaction Costs: cots. Unlike the Total Expense Rutio these costs are uaually not reported Loaps Definition ofa tone shares. A load is 4 type of Commission (remunctation). Depending on the type of load a mutual find exhibits, charges may be incurred at time of purchase, time of sale, oF a mix of both, The Frontend low loads reduce the amount of your investment. For example, let's aay you have R#.10,000 and want to invest it in a mutual fund with «5% front-end load. The RS.500 sales load you must pay comes off the top, and the remaining Rs.9 500 will be invested in the fund. According to NASDProfectsformba blogspot.com Back-end load: back-end load,"thia fee typlodlly goes te the rnkera thet ael Level load / Low load: Thistead -& back-end load may be charged if the sharex purchased are sold within « given'time fare. The distinction between level loads and low loads as opposed to, back-end loads, ie that No-load Fund: od above, not every type of shareholder fee is 4 “sales load.” A no-load find may charee fece that ire HOt sales loads, such as purchase feck, redemption fees, exchange fees, and accountProjectsform be. blogspot.com SELECTION PARAMETERS FOR MUTUAL FUND Your objective: The first point to note before tnvesting: ina fund fs to find oUt whether your obje Your risk capacity and capability: Fund Manager’s and scheme track record: Cost factorProfectsformba blogspot.com advited to consider the fund prospectus, the fund manager, and the Types of Returns on Mutual Fun funds aso pass on these gains to investors in a distribution Unfund hold ings increase in price but are not sold by the fund manager, the fund's shares increaseProjectsform be. blogspot.com RISK FACTORS OF MUTUAL FUNDS: a. The Risk- Return Trade-Off: tioiahipy to understand’ is the Hekcreturn trade-off. Higher the tale Order to do this You must first be aware of the different types Of risks involved wi 2. Marker Ri Sometimes prices and yields of all securities rise and fill. Broad outside influ 3. Credit Risk: AAA: rating ia considered the safent wheres 4 *D* rating ia considered poor credit quality. A 4. Inflation Risk:Profectsformba blogspot.com S. Interest Rate Risk: in interest rates affect the prices of bonds as we as equities. If interest rates rise the prices of 6. Pol al / Government Policy Risk: Chanzes in government po 7. Liquidity Risk:Projectsform be. blogspot.com Chapter: 2 WORKING OF MUTUAL FUNDS,Profectsformba blogspot.com STRUCTURE OF A MUTUAL FUND: Open dnd close-end fhnd opersie under the siiie regulatory atrcnire Le, taut Mutual Fund in India ia allowed to ismie ope: nd and closs-ond schemes under a’ common legal lations, 1996 © Fund Sponsor: Sponsor is defined under SEIBI rezulations as any person who, combination of another comorate body establl hes @ Mutual Fund. ‘The sponsor of the fund i= akin to the promoter of a company as Ine gets the Rand +e; stored with SEBL The sponsor forens appoint 4 custodian to hold funds assets. Al these are made in accordance with the rezulationProfectsformba blogspot.com As per the SEB regulations, forthe person t0 qualify ax a sponsor, he must contribute at Mutual Funds as Trusts: hold the assets of the trust for the benefit of the unit-holders, who are the beneficiaries of the trust, The fland then invites investor to contribute their tondy in conten BOO . by setting a Ieshoutd be understood that the fund should be just a “pass through” vehicle: Under the Indian Trusts Act, the trust of the fund has no inelependent lezal capacity itself. rather 146 the Trustees: are managed by Bosrds!of Trustees. While the boérda‘of tnumees are governed by the Indias Companies Act. 1956, The Board oF the Trust company as an independent body. acts as aProfectsformba blogspot.com ‘The Asset Management Compa nic: independent, should have adequate professional expertise in financial services and should be individuals of high morale standing, a condition alae applicable to other key personnel of the pentonnel, aystems ete.) are properly scErepated by the activity. The AMC must always act in the Custodian and Depositortes: activity. The custodian Is appointed by the Board of Trustces for safekeeping of secutitios or bbe reeistered with SEBI. With the tunel The custodian should be an entity indepencient of the sponsors and 4s required to. troduction of the concent of dematerialization of shares the Bankers:Profectsformba blogspot.com “Transfer Agents: und and service at # competitive market mite, Where an outside Transfer agent is used, the fland investor Fepulations make it mandatory for munial fund t have three structures of sponsor trustee and asset Management Company. ‘The sponsor of the mutual flind and appoints the trustees. The tnistecs are responsible to the invewtors inimuntial fund and appoint the AMC for managing theProfectsformba blogspot.com SEBI REGULATIONS: finds to protect the intercat of the investors, SEBI hae also insued guidelines to.thie mutual finds fon time to time to prowet the interents Similar type. There is no distinction in reeulatory requirements for these mutual funds and al fare subjcet to monitoring and inspections by SEBL = Also, 50% of the direciors Of AME must be independent. All mutual funds are required 16 be . stipulate that MF« cannot guramatee returns in any scheme and that cach scheme ix subject to 20:25 condition [Le m tlismie aiid ote Investor ei hold dre than 259% atake In the coris fh thar Ge acheinel,Projectsform be. blogspot.com ASSOCIATION OF MUTUAL FUNDS IN INDIA (AMF): With the increase in mutual fund players in India, a need for mutual fund association in registered with SEDI, Till date all the AMCs are that have launched mutual fund schemes sre its members. 1 fictions unider the supervision ain guidelines of ite Board of Directors. h ethical fines enhaneing and maintaining standards. 1 4 professional and healthy market wi “The Objcetives of Association of Mutual Funds in India: + This mutual fund association of India maintains high professional and ethical standards én = AMF! intemets with SEBI and works according to SEBIs guidelines in the mutual fund Bank of India and other related bodies on matters relating to the Muttal Fund Industry, = Indevelopa sitedm of well qualified and trained Agent diatibiitors, 11 rograntmaé of training énd certification for all intermediaries and other engaged in theProjectsform be. blogspot.com AMFI Publications: AME! publish mainly two types of bulletin, One is on the monthly (basis and the other isProjectsform be. blogspot.com Chapter: 3 MUTUAL FUNDS IN INDIA Fund sutis factory level. People rarely \indemtocd, and of course investing waa out of que some 24 iillion sharcholdéts were secustomed with guiatatiteed high rehire by the beginning of whereabouts rocked confidence amone the investors. Partly owing to a relatively weak stock market performance, mutual funds have not yet recovered, with funds wading at an averageProfectsformba blogspot.com private players has risen rapidly sine then. Currently there are 34 Mutual Fund organizations i until andl unless they are fully educated with the dos and don'ts of mutual funds worldwide. In the past few months there has been a consolidation phase going on in the mutual India. Now investors have # wide ringe of Schemes to choose from depending Pian. tediatey ‘on their individual proProfectsformba blogspot.com MUTUAL FUND COMPANIES IN INDIA: and!1987 marked the existance of only one mutual find company ih Indie with’ Re. 67be aaseta under management (AUM). by the cad of its monopoly era, the Unit Trust of India (UTD. By the fund market Mutual Fund, Punjab National Bank Mutual Fund, Endian Bank Mutual Fund, revised shape in 1996. was the first private cector mutual flind company in India which has now : © Benchmark Mutual Fund = = Canbank Mutsal Fund = © Chota Mutual Fund = Lic Mutual FundProfectsformba blogspot.com Fund hax slipped from the first slot. Earlier, in May 2006, the Prudential ICICT Mumal Fund was Now, according to the current pegging order and the data released by Association of position. The Peudential ICICI MF has slipped {0 the third position with an AUM of Rs 34.746 Of the Indian find industry hae risen by 6494 to Re 3.39 lalch crore compared to Rs 4,932.86 The sccond-largest find howe HDFC MF gained Rx $9.24 bi fond of Apri while UTT MIProjectsform be. blogspot.com Chapter: 4 RELIANCE MUTUAL FUND Vs U MUTUAL FUND RELIANCE Mutual Fund Anil Dnirabhal Ambani Group RELIANCE MUTUAL FUND 1004. Re on March 11 ance Mutual Fund was formed for launching of various schemes under (AA UM) of Ra. BEBE cm (AAUM for 30th Apr 00) and an investor base of over 71-53 Lacs {growing mutual funds in the country. RMF offers investors 4 well-rounded portfolio of Reliance Mutual Fund constantly endeavors to launch innovative’ products and customer minority sharcholdersProfectsformba blogspot.com Miston Statement “To be a globally respected wealth creator with an emphasis on customer care and a culture of good corporate governance.” othe Main Objectives OF The “Trust: © To catry onthe activity of a Mutual Fund a may be permined at law and formulate and + To deploy Funds thus raised so as to help the Unit holders carn reasonable returns onProjectsform be. blogspot.com SCHEMES. A)-EQUITY/GROWTH SCHEMES: Reliance Infrastructure Fund(Qpen-Ended Equity): area of primary activity, in India and the secondary objective is to genenite consistent returns Reliance Quant Plus Fund/Reliance Index Fund (Open-Ended Equity): Reliance Natural Resources Fund (Open-Ended Equity):Projectsform be. blogspot.com 4. Reliance Equit: Linked Saving Fund (A 10 Year Close-Ended Equity ): from a portfolio that is invested predominantly én equities along with income tax bene tit 5. Reliance Equity Advantage Fund (Open-Ended Diversified Equity): predominantly of cauity & cauity related instruments with investments generally in 5 & P CNX Nifty stocks and the secondary objcotive is to penerate consistent retima by investing 6. Rel nce Equity Fund (Open-Ended © A Equity) =Projectsform be. blogspot.com 7. Reliance Tax Saver (ELSS) Fund (Open-Ended Equity) okax tenets: + The dividend distribution tax (payable by the AMG) for equity schemes is also NIL 8. Reliance Growth Fund (Open-Ended Equity): The primary investment objective of the Scheme is to achieve long term growth of 9. Reliance Vision Fund (Open-Ended Equity) + 20. Reliance Equity Opportunities Fund (Open-Ended Diversified Equity): consistent returns by investing in debt and mon cy market secur 21. Reliance NRE Equity Fund (Open-Ended Diversified Equity):Projectsform be. blogspot.com 22. Reliance Long Term Equity Fund (Open-Ended Diversified Equity) Tis a 36-month close ended diversified equity fund with an automatic conversion into an open ended scheme on expiry of 36-months from the date of allotment. It ains to 13.Rel nee Regular San 2s Fund (Open ended Equity): B). DEBT/INCOME SCHEM schemes genenilly invest in fixed income sccuriProjectsform be. blogspot.com 1. Reliance Monthly Incom 2 Plan : Objective is growth of capital 2. Reliance Gi Plan: Open-ended Securities Fund - Short Term Gilt Plan & Lo oy Term Gi 3. Reliance Income Fund : 4. Reliance Medium Term Fund : Reliance Short erm Fund: (An Open End Income Scheme The primary investment objective of the scheme is to 6. Reliance Liquid Fund : Bencrate optimal returns consistent with moderate levels of risk and high Hauidity.Projectsform be. blogspot.com 7. Reliance Floating Rate Fund : (An Open Had Liquid Scheme) The primary objective of the scheme is to generate Debt Securities (including floating rate sccuritised debt and Money Market Instruments and in fixed mate debt Securities Grcliding fixed raw sccuritined debi, Money Market Instruments 8. Rel nce NRI Income Fund : (An Open-ended Income scheme) The m ©. Reliance Liquidity Fund (An Open - ended Liquid Scheme) The investment objective of the Scheme Hs to 10. Reliance Interval Fund : (A Debt Onented Interval Scheme) The primary investment objective of the scheme: Reliance Liquid Plus Fund:Projectsform be. blogspot.com 12. Reliance Fixed Horizon Fund—t ed Horizon Fund —1: 24, Reliance Fixed Horizon Fund 15. Reliance Fixed Tenor Fund = (A Close-ended Scheme) The primary investment objective Of the Plan ts to seek to 16. Reliance Fixed Horizon Fund -Plan © : 27, Reliance Fixed Horizon Fund = 1V: ose-endled Income Scheme.) The primary investment obsective of the scheme is to eck to generate regular returns and erowth of ‘capital by investing in a diversifiedProjectsform be. blogspot.com 18. Reliance Fixed Horizon Fund - V: Other fixed incomes debt securities normally mat 29, Reliance Fixed Horizon Fund— Vi: 20. Reliance Fixed Horizon Fund — Vit: es ose-endled Income Scheme.) The primary investment objective of the scheme is ©-SECTOR SPECIFIC SCHEMES: funds are dependent of the performance of the reepcetive sectorwindustries. While these findsProjectsform be. blogspot.com 2. Reliance Banking Fund 2. Reliance Diversified Power Sector Fund : \ctor Scheme is an Open-cncled Power Sector Scheme, actively investing in equity / equity related or fixed Ineome securities of Power and other associated companies 2. Reliance Pharma Fund ‘cauity related oF faved income accurities of Pharma. and other associated companies 4. Reliance Media & Entertainment Fund 1D EXCHANGE ‘TRADED FUN! D)-RELIAN (An openended Gold Exchange Traded Fund) The investment hjective’ id to! stele 10: provideProfectsformba blogspot.com Orr Mutua! Fund UNIT TRUST OF INDIA MUTUAL FUND, Indian citizens. In mid- 1980s public sector banks were allowed to open mutual funds, The real vibrancy and competition in the MF industry came with the setting up of the Regulator SEBI and ‘consideration money 16 Goverment ite market share had come down to close 10 10%, A new board was constituted and anew management inducted. Systematic study of Hts problems role and functions was carried out with the help of reputed Intemational consultant Besides running domestic MF Schemes UTT AMC is also a rezistered ponfolio manager under the SEBI (Portfolio Managers) Regu lations.Profectsformba blogspot.com Miston: To bre the most Preferred Mumal Fund. Sponsor: Reliab ity UTIME has consistently reset and upssraded transparency standards AB the branches, restructured. efficient and transparent entity, fully compliant with SEII regulationsProjectsform be. blogspot.com SCHEMES A)-EQUITY FUND 1. UTI Energy Fund (Open Ended Fundy: 9) Pot sector - oi and gas products & processing: b) Alltypes of Power generation companies ©) ‘Companies related pe-starapy oP encrny, ©) Consultancy & Finance Companies au Transportation And Logistics Fund (Auto Sector Fund) (Open Ended Fund): be bbe invested in equity and cauity related instruments, Atleast $0% of the funds wi a. UT Banking Sector Fund (Open Ended Fund) An apen-onded equity fund with the objective to provide capital appreciation through acu nfrastructure Fund (Open Ended Fund): An anen-cnded equity fund with the objective to provide Capital appreciation throushProjectsform be. blogspot.com sur Equity Tax Savings Plan (Open Ended Fund), 6. ur Srowth Sector Fund — Pharma (Open Ended Fundy: zur Growth Sector Fund — Services (Open Ended Fund): engaged it dervice sector auch as banking, Mhance, inaleance, education, taining, telecon, Bw 1 Growth Sector Fund — Software (Open Ended Fund): An open-ended fund which invests exclusive Wy in the equities of the Software Sector 9. UTE Master Equity Plan Unit Scheme (Close Ended Fund): investing the finds of the scheme in equity shares of companies with good Zrowth prospectsProjectsform be. blogspot.com 20, UTI Mast Plus Unit Scheme (Open Ended Fund) 14,UTE Mast Value Fund (Open Ended Fund) 12.UTI Equity Fund (Open Ended Fund): upto 20% fn debt and money market instruments with Low to medium risk profile 13.UTI Top 100 Fund (Open Ended Fundy: invest upte 50% of ite corpus in PSU's equities and equity related products. The find aims to 14,0 TI Mastershare Uni Scheme (Open Ended Fund): An Onen-end cauity fund aiming to provide benefit of capital appreciation and 15.UTI Mid Cap Fund (Open Ended Fund):Projectsform be. blogspot.com 16.UTI MNC Fund (Open Ended Fund): 17, UTI Dividend Yield Fund (Open Ended Fund): Te aims to provide medium to long tenn capital gains and/or dividend distribution by 18.UTI Opportunites Fund (Open Ended Fund): fas prevailing wends change. 19.UTI Leadership Equity Fund (Open Ended Fund): 20.UTI Contra Fund (@pen Ended Fund):Projectsform be. blogspot.com 24.UTI SPREAD Fund (Open Ended Fund): 22.UTI Wealth Builder Fund (Close Ended Fund): 23.UTI Long Term Advantage Fund - Series 1 (Close Ended Fund): 24.0 PL India Lifesty le Fund (Close Ended Funay: The investment objective of the scheme is to provide fone: term Capital appreciation A).ENDEX FUND: 1. UTI Master Index Fund (Open Ended Funa):Projectsform be. blogspot.com 2. UTEGold Exchange Traded Fund (Open Ended Fundy: 3. UTE Sunder (Open Ended Funa ©.ASSETS FUND. UTI Variable Investment Scheme: 4 product that would cnable them to diversify theif FiSks through a suitable allocation between debt and equity asset asses and thereby generate superior risk-adjusted returns D).BALANCED FUND: 1. UTI Manila Unit Scheme (Open Ended Funa): To invest in a portfolio of cquity/equity related securities and debt and money market The asset allocation will be Debt : Minimum 70%. Maximunt 100% Eaulty > Minimum 0%, 2. UTI Balanced Fund (Open Ended Fund):Projectsform be. blogspot.com UTI Retirement Benefit Pension Fund (Open Ended Fund): UTI Unit Link Insurance Plan (Open Ended Fund): UTE CCP (Children Career Plan) Advantage Fund (Open Ended Fund): attain the aze of 18 years, a means to receive acholarship to meet the Cost of higher education UTE Charitable, Religious Trust And Registered Society (Open Ended Fund): than 30% of the funds in equity related instruments and the balance in debt and money Investment needs of Charitable, Religious and Educational Trusts as well as Resistered INCOME FUND (DEBT FUND) UTI Bona Fund (Open Ended Fund): Oper-end 100% pure debt fund, which invests in rated corporate debt papers and goverment sccutities with relatively low rlakand ebay lquidity,Projectsform be. blogspot.com 2. UTI Floating Rate Fund STP (Open Ended Fund): 3. UTI Gilt Advantage Fund LTP(Open Ended Fund): 4. UTE Gilt Advantage Fund STP (Open Ended Funa): To generate credit risk-free retum through investment in sovercien securities issued 5. UTI G-SEC STP (Open Ended Fund): An open-end GiltPund With the objective tol inves only in Centeal Govemiment the portfolio at less than 3 years, ou 1 G-See-Investment Plan (Open Ended Fund): scourities including call money. treasury billt and repos of varying maturities with a view to 7. UTE Treasury Advantage Fund (Open Ended Fund):Projectsform be. blogspot.com 8. UTI Monthly Income Scheme (Open Ended Fund): 9. UT Mis Advantage Plan (Open Ended Fund) UTI Short Term Income Fund (Open Ended Fund): The Scheme seeks to generate steady & reasonable income with low risk & high Level UTI Capital Protection Oriented Scheme (Open Ended Fundy: +) HIGUNS Th ase waRE, UTI Liquid Cash Plan (Open Ended Fund): 2. UT Money Market Fund (Open Ended Fundy:Projectsform be. blogspot.com REDIANCE MUTUAI FUND WHT MUTUAL FUND Tow they came Tae Reeistred wih SERT as mast ander | By the OTT AG pawsed By The UTI Opportunty Fund. tribution. branches Ty any other venture? = ie Tasurance = OTT BankProjectsform be. blogspot.com Chapter: 5 MUTUAL FUNDS VS. OTHER INVESTMENTS * Fund manager are able to buy securities in large quantities thus reducing brokerage fees. wever there are some disadvantages with mutual furs sued as: © There may be too many tmnsactions in the flind resulting: in higher fec/eost to theProjectsform be. blogspot.com ‘Company Fixed Deposits versus Mutual Funds A corollary of auch linkage between mobilisation and investment ia that the gains and losses from the mutual fund scheme entirely flow through to the Investors. ‘Therefore, there can be no certainty of yield,/unless « nahied giarastor asmites a remain Ob to's lessor extent, if the Both fixed deposits and mutual funds offer Liquidity, but subject to some differences: mutual finds the liquidity provider ia the acheme itself (for open-end schemes) or the market (i the ease of closed-end wchemes). The basic Value at Which ‘fixed dépouita are ieneashed ia \Hov aubjeet toa water sak, © penalty on “early” redemption of units (through by way ef an “exit foad") Lf the NAV. hasProjectsform be. blogspot.com Bank Fixed Deposits verses Mutual Fund: While the above are causes far comfort bank deposits too are subsect to default risk However. sven the political and ceon omic impact of bank defaults. the govemment as we Risk Low Moderate Quality of assets Not transparent ‘Transparent Anterest calculation Pee carers: Every MonthProfectsformba blogspot.com Bonds and Debentures versus Mutual Funds through a “put” eption). general to execute trades in the debt market even when the trnssction size is as high as Ra 1 erors. In tent ina debt scheme would be beneficial. the identifiedProfectsformba blogspot.com Equity versus Mutual Funds © A mutual find offers a great deal ‘of diversification starting with the very firat dol + Small sums of money get you much further én mutual finds than in stocks. First, you car already taken out of the NAV). Sma + Funds provide a cheap and easy method For rein vesting dividends.Profectsformba blogspot.com The opposite of the diversification issue: If You owe just one stock and st doubles, you are up 100%. Ifa mutual find owns 50 stocks and one doubles, it ## up 2%, On the other hand. your (akhough some brokerage firms charge if there aren't enough trades) Noveniber or Devember of cach year Ser the article elsewhere in this FAQ fer moreProjectsform be. blogspot.com Life Insurance versus Mutual FundProjectsform be. blogspot.com FUTURE PROSPECT OF MUTUAL FUNDS IN INDIA ise been eetimated that by March-end of 2010, the mumal fuld industry of India will Feuch Re 40.90.00 crore, takin into account the (otal assets of the Indian commercial banks. In the lan AMC's arc in the queue to enter the Indian markets like Pidelity: = 1B and ‘C' class cities are erowing rapidly, Today mos of the mutual funds are concentrating on the 'A' class cities. Soon they will find scope in the = Mutual find can penetrate rurale like ihe Indian insurance industry with simple and eosetuded that the finite Of Mutual Funds ia ladia has lot of positive thiigs! to offer to iteProjectsform be. blogspot.com MF JARGON Net Asset Value (NAV) Sale Price Repurchase Price Redemption Price Tt is the price at which open-ended schemes repurchase their unite and’ close-ended Sales Load Repurchase or ‘Back-end’ LoadProfectsformba blogspot.com CONCLUSION Financial intermediary whe provides the required knowledge and professional expertise om Mutual fund satisfies these: requirements by providing attractive retums with affordable risks scctot mutial finds are launching a variety of schemes which caters to the requirement of the into the market through the MF route than ever before. MaulUAl Enid industry as a Whole gets lest than 2'per Cont of houschold savings againat the 46 per “If mutual funds succeed in chipping away at bank deposits, even a triple digit growth Is possibleProjectsform be. blogspot.com BIBLIOGRAPHY REFERENCE BOOK: FINANCLAL MARKET AND SERVIC! ordon and Natarajan WEBSITE: wewwiutimficom woww.reliancemutual.com www.amfiindia.com eARCH ENG! Ee: www. gooule.com www altavista.com www.yahoo.com