...Managerial Economics - Trends & growth of Mutual fund in India. Mutual Fund: Mutual Fund is an institutional arrangement wherein savings of millions of investors are pooled together for investment in a diversified portfolio of securities to spread risk and to ensure steady returns. These funds bring a wide variety of securities within the reach of the most modest of investors. It is essentially a mechanism of pooling together savings of large number of investors for collective investment with an approved objective of attractive yield and appreciation in value. The Mutual Funds offers different investment objectives such as growth, income and Tax planning. Mutual Funds play vital role in resource mobilization and its efficient allocation to the productive sources of the economic system. Throughout the world, these funds have worked as a reliable instrument of change in financial intermediation, development of capital markets and growth of the Corporate sector. The process of Liberalization, deregulation and reconstruction of the Indian economy has created necessity for efficient allocation of scarce financial resources. In this process of development, Mutual Funds have emerged as strong financial intermediaries and are playing an important role in bringing stability to the financial system and efficiency to the resource allocation process. History Mutual Fund investment traces its origin to the investments of Scottish and English investors in the American West in the 1800s...
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...An Outlook on the Evolution, Scope and Growth Potential of the Mutual Funds Industry In Deyvaansh Misra Contents INTRODUCTION 3 A RETROSPECTIVE VIEW OF MUTUAL FUNDS 5 THE FUTURE LIES ON THE BRINK OF THE HORIZON 6 CONCLUSION 10 INTRODUCTION Shakespeare once wrote, ‘out of this nettle, danger, we pluck this flower, safety'. The Indian mutual fund industry has witnessed significant growth in the past few years driven by several favourable economic and demographic factors such as rising income levels and the increasing reach of Asset Management Companies (AMCs) and distributors. However, after several years of relentless growth, the industry witnessed a fall of 8 percent in the assets under management in the financial year 2008-09 that has impacted revenues and profitability. Recent developments triggered by the global economic crisis have served to highlight the vulnerability of the Indian mutual fund industry to global economic turbulence and exposed the increased dependence on corporate customers and the retail distribution system. It is therefore an opportune time for the industry to dwell on the experiences and develop a roadmap through a collaborative effort across all stakeholders, to achieve sustained profitable growth and strengthen investor faith and confidence in the health of the industry. Innovative strategies of AMCs and distributors, enabling...
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...1.1. Introduction Mutual Funds in India – History The concept of Mutual Funds in India emerged as success as early as 1990s, when Government allowed public sector banks and institutions to launch mutual funds schemes. Unit Trust of India was the first Mutual Fund in India set-up in the year 1963 Security and exchange Board of India (SEBI) act was passed in the year 1192. The objectives of SEBI are - to regulate security market and protect the interests of investor community. It is regulatory institution which is responsible for formulating policies and guidelines for operation of mutual funds in India. Mutual funds have become extremely popular over the last 20 years. What was once just another obscure financial instrument is now a part of our daily lives. More than 80 million people, or one half of the households in America, invest in mutual funds. In fact, many people think investing means buying mutual funds. After all, its common knowledge that investing in mutual funds is (or at least should be) better than simply letting your cash waste away in a savings account, but, for most people, that's where the understanding of funds ends. It doesn't help that mutual fund salespeople speak a strange language that is interspersed with jargon that many investors don't understand. Originally, mutual funds were heralded as a way for the little guy to get a piece of the market. Instead of spending all your free time buried in the financial pages of the Wall Street Journal...
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...Report On “Mutual Funds and their role in portfolio management” Submitted in partial fulfillment of the requirement of Certification Course in Capital and Financial Markets Submitted by: Name: Karthik L.Reddy Roll No. 5 OCPCFM Batch June 2012 Under the Guidance of: Dr. J. Symss Indian Institute of Foreign Trade New Delhi 1 INDEX Serial No. 1 2 Executive summary Objectives Introduction Advantages and Disadvantages Types of Funds Managing a portfolio of funds MF industry in India Topic Page Numbers 4 5 6 9 12 15 21 26 27 28 4 Chapters 5 6 7 Conclusion References Appendix 2 APPENDIX Appendix No. Appendix 1 Appendix 2 Appendix 3 Description Major MF Companies in India and Top Funds Introduction to AMF India Knowing the Prospectus Page Numbers 28 31 33 3 EXECUTIVE SUMMARY This report – “Mutual Funds and their role in portfolio management” would help the readers take advantage of an excellent investment vehicle: mutual funds — the best of which offer you diversification, which reduces your risks, and low-cost access to outstanding money managers, who boost your returns. The topic has been chosen to provide a detailed introduction to the world of mutual funds along with the jargon associated with it, the various types of mutual funds available in today’s market. Mutual funds play a vital role in any investment portfolio. So managing a portfolio of funds becomes very critical for any investor – small or big, short-term or long-term...
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...[pic] A RESEARCH PAPER On Opportunities in indian market of mutual funds investment PIONEER (Since 1996) Submitted to Submitted By Prof. Dr. V K Jain Ravendra Kushwaha Prof. Nidhi Kothari MBA 3rd sem Roll. No. 09010118 DECLERATION I hereby declare that this Research Paper entitled “OPPORTUNITIES IN INDIAN MARKET OF MUTUAL FUNDS INVESTMENT” submitted for the extra co curriculum activities fulfillment of the requirement of Master of Business Administration (MBA) of PIONEER INSTITUTE OF PROFESSIONAL STUDIES INDORE is based on secondary data found by me in various Companies fact sheets, books, magazines and websites & Collected by me in under guidance of Prof. Nidhi Kothari. DATE: Ravendra Kushwaha ...
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...project is based on a methodological study, as it required to me to understand Indian consumer behavior related to the investments in mutual funds. To execute the knowledge, I preferred to study about the mutual funds and some other popular investments options in India. Thus the first part of the project based on learning the following in details: ➢ About Religare ➢ Product and services of Religare ➢ Services and charges provided by Religare ➢ Consumer behavior ➢ Analysis of Investors profiles ➢ Some popular Investments options in India ➢ Mutual Funds ➢ Market survey and research. After undergoing the training about the products and operational features. I started exploring the product and contact the prospective customers by way of tele callings, emails, corporate presentations, road shows and by arranging canopy. My primary aim was to give better options to the prospective customers by offering them products specialized features and its unique incomparable qualities in the services provided by Religare securities limited. OBJECTIVE OF THE STUDY The objective of this research and survey is to know the Indian consumers behavior related to the investment in Mutual Funds. In this research & survey firstly I tried to analyze the various popular investment options available in India, and their strengths and weaknesses. Apart from this I also tried to find out the investors thinking, preferences on the basis of demographical...
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...EQUITY DIVERSIFIED MUTUAL FUNDS V/s DIRECT EQUITY: A comparative study Submitted in Partial Fulfillment for the Degree of Bachelor of Business Studies By Akshat Jain (Roll No. – 08/BBS/7160 Batch: 2008-2011 ) To DEEN DAYAL UPADHYAYA COLLEGE University of Delhi Shivaji Marg, Karampura New Delhi-110015 | | | ACKNOWLEDGEMENT Encouragement motivates a person towards one’s aim while guidance helps one to achieve it. Both encouragement and guidance take one towards success in one’s works. It would be difficult and almost impossible to achieve excellence without the blessings of God above and of elders. I convey my heartfelt affection and accord my deep sense of gratitude to Dr. Deepa Kamra, Faculty Guide for inspiring guidance, constructive criticism, unlimited interest and innovative ideas throughout the pursue of this manuscript. Akshat Jain DECLARATION I Akshat Jain have completed the Summer Training Project titled “EQUITY DIVERSIFIED MUTUAL FUNDS V/S DIRECT EQUITY” under the guidance of Dr. Deepa Kamra in the partial fulfillment of the requirement for the award of degree of Bachelor of Business Studies from Deen Dayal Upadhyaya College, Delhi University. This is an original piece of work & I have neither copied and nor submitted it earlier elsewhere. Akshat Jain Certificate from Internal Guide ...
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...Perception towards Mutual Funds Dr. Nishi Sharma1 Abstract The concept of mutual fund emerged in Netherlands in 18th century and introduced in India by Unit Trust of India in1960s. As the mutual fund industry provides an option of diversified investment structure with varying degree of risk, it was supposed to be the most lucrative market for Indian investors. It was believed that it will surely tap the savings of common man. But in practice it failed to become a primary choice for investment to Indian investor. During almost six decades (1965-2011) the value of assets under management of mutual fund industry experienced great swings. As against the developed countries where almost every second investor is a mutual unit holder, the product could not get much popularity in India. In this reference, the present paper attempts to investigate the reasons responsible for lesser recognition of mutual fund as a prime investment option. It examines the investor’s perception with reference to distinct features provided by mutual fund companies to attract them for investing in specific funds/schemes. The study uses principal component analysis as a tool for factor reduction. The paper explored three factors named as fund/scheme related attributes, monetary benefits and sponsor’s related attributes (having respectively six, four and four variables) which may be offered to investors for securing their patronage. The results are expected to provide fruitful insight to mutual fund companies for...
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...Bank of India (RBI) has asked the Anil Dhirubhai Ambani Group firm, Reliance Infrastructure (earlier, Reliance Energy), to pay just under Rs 125 crore as compounding fees for parking its foreign loan proceeds worth $300 million with its mutual fund in India for 315 days, and then repatriating the money abroad to a joint venture company. These actions, according to an RBI order, violated various provisions of the Foreign Exchange Management Act (FEMA). In its order, RBI said Reliance Energy raised a $360-million ECB on July 25, 2006, for investment in infrastructure projects in India. The ECB proceeds were drawn down on November 15, 2006, and temporarily parked overseas in liquid assets. On April 26, 2007, Reliance Energy repatriated the ECB proceeds worth $300 million to India while the balance remained abroad in liquid assets. It then invested these funds in Reliance Mutual Fund Growth Option and Reliance Floating Rate Fund Growth Option on April 26, 2007. On the following day, i.e., on April 27 2007, the entire money was withdrawn and invested in Reliance Fixed Horizon Fund III Annual Plan series V. On March 5, 2008, Reliance Energy repatriated $500 million (which included the ECB proceeds repatriated on April 26, 2007, and invested in capital market instruments) for investment in capital of an overseas joint venture called Gourock Ventures based in British Virgin Islands. RBI said, under FEMA guidelines issued in 2000, a borrower is required to keep ECB funds parked...
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...| Shashank Gupta (2013266) | 9/6/14 | Financial Services | | | Financial Services AssignmentSubmitted to Prof. S. Shanbhag | Shashank Gupta (2013266) | 9/6/14 | Financial Services | | Q. What does the Government of India hope to achieve with the new draft RBI guidelines for the wealth management industry? What are the reasons behind introduction of the new regulations? A. Reserve bank of India’s guidelines for the wealth management industry prohibit banks from offering discretionary wealth management services to their customers, wherein a portfolio manager independently manages funds of individual customers and takes their investment decisions. The discretionary portfolio management service also includes portfolios broadly directed by the customer, or those wherein the customer gives a negative list of investment products at the time of opening the account so that the fund manager ensures that such investment products are not included in the portfolio. In case of non-discretionary services, the RBI allows banks to work through a separately identifiable department or division (SIDD) or a subsidiary. Such a subsidiary or SIDD would require to be registered with market regulator Securities and Exchange Board of India (SEBI) and comply with SEBI guidelines on providing these services, including the code of conduct, if any. There should be an arm’s length relationship between the bank and the subsidiary if the latter is offering wealth management services...
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...1806 GI/2015 (1) डोब यमयनिवि वए तिभतिᮧ यीतराभ नमयनिवि ाकनइ ाथत ीगएाज ᳱक तपिाथ᭭ रासनअ ᭅ ं ू ु क ᲂयधिनि तरᳯाधनि ाथय एलि क शवनि म ᲂयतिभतिᮧ ीराकरस टनिय ᳱक डफ लअचय᭥ )ग( े ᭅ े े ᱶ ू ू ं ू ।ागोह ᱭहन स कधिअ %01 े क ोयलिोफटोप लक क धिनि ोयलिोफटोप तशिवनि तᭅगतअ क ीण᮰-पउ सइ क ᲂयतिभतिᮧ े ᭅ ु े ᭅ े ं े े े ू ।ीगएाज ीद ारा᳇ राकरस य᭔ार ावथअ राकरस ᮤक ीटराग तश ानबि रऔ ीरप ᳱक जाय᭣ रप सउ रऔ नधलम कसजि ]ायतिभतिᮧ तषिाभरᳯप ᱶ ं ᭅ ू ू े ं ू ाथय म )ज(2 ाराध ᳱक 6591 ,)नमयनिवि( ादविस तिभतिᮧ[ ायतिभतिᮧ य᭠अ )ख( ᱶ ं ू ं ू कत %05 ाथत कत %05 ाथत कत %05 ाथत कत %05 ाथत %54 मतनय᭠ %54 मतनूूय᭠ ूू %54 मतनय᭠ %54 मतनय᭠ ायतिभतिᮧ ीराकरस )क( ं ू , शे तधिबस ाथत ायतिभतिᮧ ीराकरस ंं ूू शवनि तधिबस ाथत ायतिभतिᮧ ीराकरस ंं ंं त ंंायतिूूभतिᮧ ीराकरस त ायतिभतिᮧ ीराकरस शिार शिार शिार शिार तशतिᮧ ीलाव तशतिᮧ ीलाव तशतिᮧ ीलाव तशतिᮧ ीलाव नाज ᳱक शवनि े े नाज ᳱक शवनि ेेनाज ᳱक शेेवनि )i( तिप ᳱक शवनि ीण᮰ तिप ᳱक शेेवनि ीणेे᮰ े े तिप ᳱक शवनि ीण᮰ -:ाथय एहिाच ानाज ायकᳰ शवनि रासनअ क तिप तखिलिन᭥नि े ु े ोक िव ीयचस ीभस तधिबस स धिनि कᳰ ैह ीतद शदनि ारा᳇दतए राकरस ᮤ᭠क एᱟ तरक णमᮓधिअ ाक ानचसधिअ ृ ं ं ं े े े े े ू ᳱक राकरस तराभ ᳱक 3102 ,रबवन 12 कानदᳰ ,)अ(0543 .आ.ाक म यलाᮢम म᮰ वए एᱟ तरक गोयᮧ ाक ᲂयᲦिश ं ं ᱶ ं ं े )अ(1701 .आ.ाक )अ(1701 .आ.ाक त᭜दᮧ ारा᳇ )1( दछ᭒नअ पउ क 25 दछ᭒नअ क 2591 ,ानजोय धिनि य᭬विभ ीराचमक )अ(1701 .आ.ाक े ु े े ु े ᭅ .— लᮧअ 32 ,ील᭨दᳰ ईन ै 5102 , अिधसूचना ᮰म एवं रोजगार मंᮢालय la- 836] No. 836] NEW...
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...Analysis of how Mutual Funds can be used as a dynamic tool for diversification.. INTRODUCTION There are a lot of investment avenues available today in the financial market for an investor with an invest-able surplus. He can invest in Bank Deposits, Corporate Debentures, and Bonds where there is low risk but low return. He may invest in Stock of companies where the risk is high and the returns are also proportionately high. The recent trends in the Stock Market have shown that an average retail investor always lost with periodic bearish tends. People began opting for portfolio managers with expertise in stock markets who would invest on their behalf. Thus we had wealth management services provided by many institutions. However they proved too costly for a small investor. These investors have found a good shelter with the mutual funds A mutual fund is an investment vehicle that comprises a pool of funds collected from a large number of investors who invest in securities such as stocks, bonds, and short term money market instruments. The portfolio of a mutual fund is structured and maintained by fund managers. Diversification means spreading out money across many different types of investments. When one investment is down another might be up. Diversification of investment holdings reduces the risk tremendously A mutual fund is a group of investors operating through a fund manager to purchase a diverse portfolio of stocks or bonds. Mutual funds are highly cost...
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...top_____ of global exchanges in terms of market capitalization of its listed companies Six Eight Ten nine 5 As of December 31, 2009 the Bombay Stock Exchange was the world’s number _____ exchange in the world in terms of listed companies One Two Five Three 6 The first exchange in India to get ISO 9001:2000 certification was _____ The Multi Commodity Exchange The Bombay Stock Exchange The OTCEI The National Stock Exchange 7 Bombay Stock Exchange was the __________ in the world to obtain the ISO 9001:2000 certifications First Second Fifth Third 8 Exchange traded fund (ETF) on SENSEX are listed on BSE and Exchange in ________ UK USA Hong Kong Japan 9 The debt market in India covers all, except Letters of Credit External Commercial Borrowings State Govt. debts Central Govt. debts 10 Currently, Indian Securities market comprised of _________ stock exchanges spread throughout the country 15 22 19 17 Which of the following is not a market regulator Ministry of Corporate Affairs Securities and Exchange Board of India (SEBI) Ministry of commerce Department of Economic Affairs 11 ©BSE Institute...
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...Manual on Financial and Banking Statistics 6. NON-BANKING FINANCIAL COMPANIES The activities of non-banking financial companies (NBFCs) in India have undergone qualitative changes over the years through functional specialisation. The role of NBFCs as effective financial intermediaries has been well recognised as they have inherent ability to take quicker decisions, assume greater risks, and customise their services and charges more according to the needs of the clients. While these features, as compared to the banks, have contributed to the proliferation of NBFCs, their flexible structures allow them to unbundle services provided by banks and market the components on a competitive basis. The distinction between banks and non-banks has been gradually getting blurred since both the segments of the financial system engage themselves in many similar types of activities. At present, NBFCs in India have become prominent in a wide range of activities like hire-purchase finance, equipment lease finance, loans, investments, etc. By employing innovative marketing strategies and devising tailor-made products, NBFCs have also been able to build up a clientele base among the depositors, mop up public savings and command large resources as reflected in the growth of their deposits from public, shareholders, directors and other companies, and borrowings by issue of non-convertible debentures, etc. Consequently, the share of non-bank deposits in household sector savings in financial assets...
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...After gaining an idea into what IB is and understanding the basics of Trading, we would study in detail the capital-raising process, mainly Underwriting and Syndication. Here, we would learn about IPO and SEO and ADR and GDR as well as about NIF and RUF. We would also get familiar with Euromarket and the innovative Euro instruments like Euronote and Euro-CP as well as Eurobond and Euroequity. This would also give an opportunity to get a glimpse into Financial Engineering in debt and equity instruments as well as about Structured Financing. We would then talk about MADS (merger, acquisition, divestiture, and spinoff) and learn how to evaluate them. Wealth Management and Mutual Fund would commence one of our focus areas, and, here, we would learn how an AMC works. This would lead to an insight into Hedge Funds and Private Equity. In that light, we would also talk about LBOs and LBO valuation. Project Financing (PF)...
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