Академический Документы
Профессиональный Документы
Культура Документы
WORKING
2.0 Introduction
2.A. 1 Concept of mutual fund
2.A.2 Definitions
Principles
Conclusion
Introduction
Conclusion
Conclusion
2.0 Introduction
signifies that such benefits accrue pro rata to all the investors
2.A.3 Principles
even eliminate the specific risk that comes with the ownership
have the obligation to add value over and above the returns
successfully applied.
2.A.4 Types of Mutual Fund Schemes
NAV (Net Asset Value). NAV is the per unit market value of the
The market prices are expected to be equal to the NAV, but for
obvious reasons they are seldom equal to the NAV, and most
ended schemes.
Figure 3.1 Classification of mutual funds
,
- ~~
Physical m b Domestic
piq+-y GOney
market
Income
I
\ssured return
2.A.4.3 Load fund schemes
at the time of entry, exit or both are called load fund schemes.
fund schemes.
schemes are ideal for investors who need some regular income
the long term. Can Expo, Franklin India Growth Fund, HDFC
2.A.4.9Index Funds
NSE 50. The returns offered are linked with the changes in the
index. These schemes are ideal for investors who are satisfied
SEBI allows only those mutual funds that have a track record
of return can be given only for one year at a time with post-
dated cheques.
C
Fund, Kothari Pioneer MMF, UTI Money Market Fund, etc are
examples.
mutual fund.
2.A.5.5 Transparency
2.A.5.6 Flexibility
plans.
All mutual funds are registered with SEBI and they function
2.A.5.9Tax Benefits
from tax under Section 10 (23D)of the Income Tax Act, 1961.
Income Tax. The UTI is also not liable to pay any tax is respect,
convenient.
2 .A.6.1Higher risk
All mutual funds are subject to risks and those that depend
fund managers and just rely on the due diligence of the fund
managers.
2.A.7 Conclusion
explain
. .
the
.
structure and legal structure in which mpmal
.... .
2.B.O Introduction
the activities of the trustee, the AMC and the custodian are
agreement14.
related services.
Figure 3.215 Structure of Mutual Funds
rust ik Registers MF
with SEBI
Trustees
manages
Ensure compliance t
I Float MF Funds
-L-l
Manages Fund as per
SEBI Guidelines and
AMC Agreement
;ell unit!
2.B.2 Working of Mutual Funds
eligibility criteria:
with positive net worth in all the years and profit for
turpitude.
of the Regulations.
scheme.
C, and
management company.
Regulations. The trustees can enjoy all the rights and are
The trustee can also appoint the AMC if the trust deed so
transactions.
mutual fund.
Rs. 10 crores.
conditions:
1. Any director of the AMC shall not hold the office of the
been obtained.
granted by it.
(MF) Regulations.
and
the trustees.
these regulations.
QQ
5. The trustees at the request of the AMC may terminate
AMC.
schemes.
SEBI.
meeting.
financial year.
AMC can launch a scheme only after getting approval for the
scheme from the trustees and after having fded a copy of the
soon as possible but not later than six weeks from the date of
the AMC.
document.
are wound-up:
fund is formed.
trustee or the AMC, as the case may be, may cease to carry on
of the scheme.
2.B.4.1 SEBI
2.B.4.2 RBI
joint control of the SEBI and the RBI. All the market-related
Finance controls both the SEBI and the RBI. It is the supreme
of India.
India Act, 1963. All the schemes and the functioning of the
101
UTI had being controlled by the provisions of the Act until
2.B.5 Conclusion
www.sec.gov
Reilly, Frank K, Investments, The Dryden Press, The USA, 1982,pp 525-
526.
Calcutta, 1996, p l
Fredman, Albert J and Russ Wiles, How Mutual Funds Work, Prentice-