Economics - Mutual Funds - Notes - Economics, Study notes of Economics

Download Economics - Mutual Funds - Notes - Economics and more Study notes Economics in PDF only on Docsity! MUTUAL FUNDS The orgin of the mutual funds can be traced in Britian in the late 19th century and early 20th century. Unit trust was the first mutual fund in India which was set up in 1964. Mutual funds are those who represent pooled savings of investors in divesified portfolio to obtain maximum return on investment with the minimum risk. In recent years, mutual funds have become most important among the newer capital market inistituions. Like unit trust of india, many public sector banks and financial institutions have setup mutual funds on tax saving schemes. Objectivies of Mutual Funds To provide investment opportunity to the small investors to participate in the fast growing corporate securities market through indirect way. To provide a higher return than the banks without having much risk. To mobailize savings from the small investors and channalise than for productive purposes. To provide multiplicity of investment options like current return, capital appriciation, tax benefit or a combination of all these. To strengthen the capital market by assuring better flow of funds. Contents Meaning of mutual funds Objectives of mutual funds Registration and Trustee Advantages of mutual funds SEBI’s regulations Some Major Private Mutual Funds ICICI Ltd. Mutual Fund, IDBI Mutual Fund, Kothari Pioneer Mutual Fund, 20th Century Mutual Fund, Alliance 1995, GIC Mutual Fund, Birla Mutual Fund, JM Mutual Fund and ITC Mutual Fund etc. Government allowed the entry of mutual fund in 1992 and SEBI has cleared a number of private mutual funds. Above mentioned are a few among them. Registration and Trustee: Mutual funds are required by law to obtain a certificate of registration from the SEBI. They have to apply in form A and deposit a fee