Mf Industry
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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 mangt)
: 1964-1987 ( 6700 Cr. Assets under
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 mangt)
: since 2003 ( 1 39 108 Assets under
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.
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 mangt)
: 1964-1987 ( 6700 Cr. Assets under
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 mangt)
: since 2003 ( 1 39 108 Assets under
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.
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