MINI PROJECT REPORT

ON
“MUTUAL FUNDS”

SUBMITTED IN PARTIAL FULFILMENT OF THE

REQUIREMENT FOR THE AWARD OF DEGREE OF

Master of Business Administration

(2nd Semester)

Submitted By

GHAZALA AFRIN
Roll No. 2001750700017
Submitted to
'

Dr. S A ATIF SALAR

(Assistant Professor)

ABIMS, Aligarh

AL-BARKAAT INSTITUTE OF MANAGEMENT STUDIES

Anoop Shahar R o a d , Aligarh
(AFFILIATED TO DR. APJ ABDUL KALAM TECHNICAL
UNIVERSITY, LUCKNOW)
2020-2021
 DECLARATION

I, Ghazala Afrin, student of MBA 2nd Semester, Al-Barkaat Institute of

Management Studies, Aligarh hereby declare that the Mini Project Report on

“MUTUAL FUNDS” prepared by me is an original work submitted to Dr.

APJ Abdul Kalam Technical University, Lucknow towards partial

fulfilment of the requirement for the award of MBA.

Further, I also declare that I have tried my best to complete this report with

utmost sincerity and accuracy. If any mistake or error has crept in, I shall most

humbly request the readers to point out those errors or omissions and guide me

for the correction of those errors in the future.

Ghazala Afrin

MBA 2nd Semester,

ABIMS, Aligarh
 ACKNOWLEDGEMENT

A mini project report is never the sole product of the person whose name
appears on the cover. There is always help, guidance and suggestion of many
in preparation of such a report. So, it becomes my duty to express my gratitude
towards all of them.

First of all, I would like to express my gratitude to Dr. S A Atif Salar

(Assistant Professor), Management Department, ABIMS, Aligarh for his
thoughtfulness, excellent guidance and insight which was extended to me at
every step of the making of this project and helpful environment which was
available at all points.

I am grateful to my parents for their loving and caring attitude and generous
support at every step of my life.

Last but not the least, a token of deep appreciation to my friends who stood
by my side at time of need. Other than above, there are many friends whom
I have failed to mention, have also been helpful to me.

Ghazal Afrin
 TABLE OF CONTENT

1. INTRODUCTION OF MUTUAL FUND

2. HISTORY OF MUTUAL FUND

3. ADVANTAGES OF MUTUAL FUND

4. DISADVANTAGES OF MUTUAL FUND

5. TYPE OF MUTUAL FUND

6. WORKING OF MUTUAL FUND

7. STRUCTURE OF MUTUAL FUND

8. MUTUAL FUNDS IN INDIA

9. RELIANCE MUTUAL FUND Vs UTI MUTUAL

FUND

10. FUTURE OF MUTUAL FUND IN INDIA

11. CONCLUSION
Introduction of Mutual Fund

There are a lot of investment revenue available today in the financial market

for an investor with an investable surplus. He can invest in bank deposit,

corporate debenture and bonds where there is low risk but low return. He may

invest in stock of companies where there is high risk and the return are also

proportionately high. The recent trend in the stock market have shown that an

average-retail investor always lost with periodic bearish trend. People began

opting for portfolio managers with expertise in stock market who would invest

on their behalf. Thus, we had wealth management service provided by many

institutions. However, they proved too costly for a small-investors. These

investors have found a good shelter with mutual fund.

Concept of Mutual Funds: -

A mutual fund is a Common pool of money into which investors place their

contributions that are to be invested in accordance with a stated objective. The

ownership of the funds is thus joint or mutual the fund belonging to all

investors. A single investors ownership of the fund is in the same proportion as

the amount of the contribution made by him or her bears to the total amount of

the fund.

Mutual fund are trusts, which accept saving from investors and invest the same

in diversified financial instruments in term of objective set out in the trust deed

with the view to reduce the risk and maximize the in income and capital

appreciation for distribution for the members. A mutual fund is a corporation

and the fund manager’s interest are to professionally managed the fund

provided by the investors and provide a return on them after deducting

reasonable management fees.

The objective sought to be achieved by Mutual fund is to provide an

opportunity for lower income groups to acquire without much difficulty

financial assets. They cater mainly to the needs of the individual investor whose

means are small and to manage investors portfolio in a manner that provides a

regular income, growth, safety, liquidity and diversification opportunities.

Definition: -

 Mutual funds are collective savings and investment vehicles where savings

of small (or sometimes big) investors are pooled together to invest for their

mutual benefit and returns distributed proportionately.

 A mutual funds is an investment that pools your money with the money of

an unlimited number of other investors. In return, you and the other

investors each own shares of the fund. The funds’ assets are invested

according to an investment objective into the fund portfolio of investments.

Aggressive growth funds seek long term capital growth by investing

primarily in stocks of fast-growing smaller companies or market segments.

Aggressive growth fund is also called capital appreciation funds.

 Why Select Mutual Fund?

The risk trade off indicates that if investor is willing to take higher risk then

correspondingly, he can expect higher returns and vice versa if he pertains to

lower risk instruments, which would be satisfied by lower returns. For example,

if an investors option for bank FD, which provide moderate return with

minimum risk. But as he moves ahead to invest in capital protected funds and

the profit-bonds that give out more return which is slightly higher as compared

to the bank deposit but the risk involved also increase in the same proportion.

Thus, investors choose mutual funds as their primary means of investing as

Mutual funds provided professional management, diversification, convenience

and liquidity. That doesn’t mean mutual funds investment risk free.

This is because the money that is pooled in are not invested only in debts funds

which are less risker but are also invested in the stock market which involves a

higher risk but can expect higher returns. Hedge fund involves a very high risk

since it is mostly traded in the derivatives market which is considered very

volatile.
 History of Mutual Funds in India: -
The mutual fund industry in India started in 1963with the formation
of Unit Trust of India, at the initiative of the government of India and Reserve
Bank. The history of mutual funds in India can be broadly divided into four
distinct phases.

First Phase-1964-1987:
Unit trust of India (UTI)was established on1963 by an Act of parliament.
It was setup by the Reserve Bank of India and functioned under the Regulatory
and administrative control of the Reserve Bank of India. In 1978 UTI was de-
link from the RBI and the Industrial Development Bank of India (IDBI) took
over the regulatory and administrative control in place of RBI. The first scheme
launched by UTI was unit scheme 1964. At the end of 1988 UTI had Rs.6,700
crores of asset under management.

Second Phase-1987-1993(Entry of Public Sector

Funds):

1987 marked the entry of non UTI, public sector mutual funds set up by public
sector bank and Life Insurance Corporation of India (LIC)and General
Insurance Corporation of India (GIC).SBI Mutual fund was the first non UTI
mutual fund established in June 1987 followed by Canara Mutual fund
(Dec1987), Punjab National Mutual Fund (Aug1989), Indian Bank Mutual
Fund (Nov1989),Bank of India (June 1990),Bank of Baroda Mutual Fund
(Oct1992),LIC established its mutual fund in June 1989 while GIC had set up
its mutual fund in December 1990. At the end of 1993, the mutual fund industry
had asset under management of Rs.47,004 crores.

Third Phase-1993-2003(Entry of Private Sector

Funds):

With the entry of private sector funds in 1993, a new era started in the Indian
mutual fund industry, giving the Indian investors a wider choice of fund
families. Also 1993 was the year in which the first mutual fund regulations
came into being, under which all mutual funds, except UTI were to be registered
and governed. The erstwhile Kothari Pioneer (now merged with Franklin
Templeton) was the first private sector mutual fund registered in July 1993.

The 1993 SEBI (Mutual Fund) regulations were substituted by a more

comprehensive and revised Mutual Fund Regulations in 1996. The industry
now functions in under the SEBI (Mutual Fund) regulations 1996.

The number of mutual fund houses went on increasing with many foreign
mutual funds setting up fund in India and also the industry has witnessed several
mergers and acquisitions. As the end of January 2003, there were 33mutual
fund with total assets of Rs.1,21,805 crores. The Unit Trust of India with
Rs.44,541 crores of assets under management was way ahead of other mutual
funds.
Forth Phase-Since February 2003:
In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI

was bifurcated into two separate entities. One is the specified undertaking of

the Unit Trust of India with assets under management of Rs.29,835 crores at

the end of January 2003, representing broadly, the assets of US 64 scheme,

assured return and certain other schemes. The specified undertaking of Unit

Trust of India, functioning under an administrator and under the rules framed

by Government of India and does not come under the purview of the mutual

fund regulations.

The second is the UTI Mutual Fund Ltd. Sponsored by SBI, PNB, BOB and

LIC. It is registered with SEBI and function under the mutual fund regulations.

With the bifurcation of the erstwhile UTI which had in March 2000 more than

Rs. 76,000 crores of assets under management and with the settings up of a UTI

Mutual Fund, confirming to the SEBI Mutual Fund Regulations, and with the

recent mergers taking place among different private sector funds, the mutual

fund industry has entered its current phase of consolidated and growth. As at

the end of September 2004 there were 29 funds, which manage assets of

Rs.153108 crores under 421 schemes.

The graph indicates the growth of assets under management over the years.

GROWTH OF ASSETS UNDER MANAGEMENT

 Advantage of Mutual Funds:
If mutual funds are emerging as the favorite investment vehicle, it is because of
the many advantages they have over other forms and the revenue of investing,
particularly for the investor who has limited resources available in terms of
capital and the ability to carry out detailed research and market monitoring. The
following are the major advantages offered by mutual funds to all investors.

1.Portfolio Diversification:
Each investor in the fund is a part owner of all the Funds’ assets, this enabling
him to hold a diversified investment portfolio even with a small amount of
investment that would otherwise requiring big capital.

2.Professional Management:
Even if an investor has a big amount of capital available to him, he benefits
from the professional management skills brought in by the fund in the
management of the investor’s portfolio. The investment management skills,
along with the needed research into available investment options, ensure a
much better return than what an investor can manage on his own. Few investors
have the skill and resources of their own to succeed in today’s fast moving,
global and sophisticated markets.

3.Reduction/Diversification of Risk:
When an investor invests directly, all the risk of potential loss is his own,
whether he places a deposit with a company or a bank, or he buys a share or
debenture on his own or in any other from. While investing in the pool of funds
with investors, the potential losses are also shared with other investors. The risk
reduction is one of the most important benefits of a collective investment
vehicle like the mutual fund.

4.Reduction of Transaction costs:

What is true of risk as also true of the transaction costs. The investors bear all
the costs of investing such as brokerage or custody of securities. When going
through a fund, he has the benefits of economics of scale; the funds pay lesser
cost because of larger volumes, a benefit passed on to its investors.

5.Liquidity:
Often, investors hold shares or bonds they cannot directly, quickly and easily
sell. When they invest in the units of funds, they can generally cash their
investment any time, by selling their units of funds if open ended, or selling
them in the market if the fund is close end. Liquidity of investment is clearly a
big benefit.

6.Convenience and Flexibility:

Mutual fund management companies offer many investors service that a direct
market investor cannot get. Investors can easily transfer their holding from one
scheme to the other; get updated market information and so on.

7.Tax Benefits:
Any income distributed after March 31,2002 will be subject to tax in the
assessment of all unit holders. However, as a measure of concession to unit
holders of open-ended equity-oriented funds, income distributions for the year
ending March 31,2003 will be taxed at an occasional rate of 10.5%.

In case of individual and Hindu Undivided Families a deduction up to Rs.9,000

from the total income will be admissible in respect of income from investment
specified in Section 80L, including Income from units of the mutual fund. Units
of the schemes are not subject to wealth tax and gift tax.

8.Choice of schemes:
Mutual Fund offer a family of schemes to suit your varying needs over a life
time.

9.Well Regulated:
All mutual fund is registered with SEBI and they function within the provisions
of strict Regulations designed to protect the interests of investors. The operation
of mutual funds is regularly monitored by SEBI.

10.Transparency:
You get regular information on the value of your Investment in addition to
disclosure on the specific investment made by your scheme, the proportion
invested in each class of assets and the fund manager’s investment strategy and
outlook.
Disadvantages of mutual funds: -

1.No control over cost:

An investor in a mutual fund has no control of the overall cost of
investing. The investors pay investment fee as long as he remains with the fund,
albeit in return for the professional management and research. Fees are payable
even if the value of his investment is declining. A mutual fund investor also
pays fund distribution costs, which he would not incur in direct investing.
However, this shortcoming only means that there is a cost to obtain the mutual
fund services.

2.No tailor-made portfolio:

Investors who invest on their own can build their own portfolio of share and
bond’s and other securities. Investing through funds means he delegates this
decision to the fund manager. The very high net worth individuals or large
corporate investors may find this to be a constraint in achieving their objectives.
However, most mutual fund manager help investors overcomes this constraint
by offering families of funds-a large number of different schemes -within their
own management company. An investor can choose from different investment
plans and construct a portfolio to his choice.

3.Managing of portfolio of funds:

Availability of a large number of funds can actually mean too much choice for
the investor. He may again need advice on how to select a fund to achieve his
objectives, quite similar to the situation when he has individual shares or bonds
to select.

4.The wisdom of professional management:

That’s right, this is not an advantage. The average mutual fund manager is no
better at picking stock than the average professional, but charges fee.

5.No control:
Unlike picking your own individual stocks, a mutual fund puts you in the
passenger seat of somebody else car.

6.Dilution:
Mutual funds generally have such small holding of so many different stocks
that insanely great performance by a fund top holding still doesn’t make much
of a difference in a mutual fund’s total performance.

7. Buried costs:
Many mutual funds specialize in buying their costs and in hiring salesman who
do not make those costs clear to their clients.
 Types of mutual funds schemes
in India: -

Wide variety of mutual fund schemes exits to cater to the needs such as financial
position, Risk tolerance and return expectations etc. thus mutual funds has
variety of flavors, being a collection of many stocks, an investor can go for
picking a mutual fund might be easy. There are over hundreds of mutual funds
schemes to choose from. It is easier to think of mutual fund in categories,
mentioned below.
A. By Structure-
1. Open ended schemes:
An open-ended funds is one that is available for subscription all through the
year. These do not have a fixed maturity. Investors can conveniently buy and
sell units at net assets value (NAV) related prices. The key features of open-
ended schemes are liquidity.

2.Close ended schemes:

A close ended fund has a stipulated maturity period which generally ranging
from 3to 15 years. The funds are open for subscription only during a specific
period. Investors can invest in the schemes at the time of the initial public
issue and thereafter they can buy or sell the units of the scheme on the stock
exchanges where they are listed. In order to provide an exit route to the
investors, some close ended funds give an option of selling back the units to
the mutual fund through periodic repurchase at NAV related prices. SBI
Regulations stipulate that at least one of the two exit routes are provided to
the investors.

3.Interval schemes:
Interval schemes are that Schemes, which combines the features of open
ended and close ended schemes. The units may be traded on the stock
exchange or may be open for sale or resumption during pre-determined
interval at NAV related prices.
B. By nature-
1. Equity fund:
These funds invest a maximum part of their corpus into equities holdings.
The structure of the fund may vary different schemes and the fund manager’s
outlook on different stocks. The equity funds are sub classified depending
upon their investment objective, as follows:

 Diversified equity funds

 Mid-cap funds
 Sector specified funds
 Tax savings funds (ELSS)

Equity investment are meant for a longer time horizon; thus, equity funds
rank high on the risk return matrix.

2.Debt funds:
The objective of the fund is to invest in a debt paper. Government
authorities, private companies, bank and financial institutions are some of
the major issuer of debt papers. By investing in debt instruments, these funds
ensure low risk and provide stable income to the investors. Debt funds are
further classified as:

 Gilt funds: invest their corpus in securities issued by Government,

popularly known as government of India debt papers. These funds
carry zero default risk but are associated with interest rate risk.
These schemes are safer as they invest in paper backed by
Government.
 Income funds: invest a major portion into various debt instruments
such as bonds, corporate debenture and government securities.
  MIPs: invest maximum of their total corpus in debt instruments
while they take minimum exposure in equities. It gets benefits of
both equity and debt market. These schemes rank slightly high on
the risk return matrix when compared with other debt schemes.

 Short term plans (STPs): meant for investment horizon for three
to six months. These funds primarily invest in short term paper like
certificate of deposit (CDs) and commercial papers (CPs). Some
portion of the corpus is also invested in corporation debenture.

 Liquid funds: also known as money market schemes, these funds

provide easy liquidity and preservation of capital. These schemes
invest in short term instruments like Treasury Bills, interbank call
money, CPs and CDs l. These funds are meant for short term cash
management of corporate houses and are meant for an investment
horizon of 1day to 3 months. These schemes rank low on risk return
matrix and considered to be the safer amongst all categories of
mutual funds.

3. Balanced fund:
As the name suggests they are a mix of both equity and debt funds.
They invest in both equities and fixed income securities, which are in line with
pre-defined investment objective of the scheme. These schemes aim to provide
investors with the best of both the worlds. Equity part provides growth and the
debt part provides availability in returns.
C. By investment objective:
1. Growth schemes:
Growth schemes are also known as equity schemes. The aim of these
schemes is to provide capital appreciation over medium to long term. These
schemes normally invest a major part of their fund in equities and willing to
bear short term decline in value for possible future appreciation.

2.Income schemes:
Income schemes are also known as debt schemes. The aim of these schemes
is to provide regular and steady income to investors. These schemes
generally invest in fixed income securities such as bonds and corporate
debentures. Capital appreciation in such schemes may be limited.

3.Balanced schemes:
Balanced schemes aim to provide both growth and income by periodically
distributing a part of the income and capital gain they earn. These schemes
invested in both share and fixed income securities, in the proportion indicates
in their offer documents (normally 50-50).

4.Money market schemes:

Money market schemes aim to provide easy liquidity, preservation of capital
and moderate income. These schemes generally invest in safer, short term
instruments, such as Treasury Bills, certificate of deposit, commercial papers
and interbank call money.

Loads funds- a load funds are one that charge a commission for entry or
exit. That is, each time you buy or sell unit in the fund, a commission will
be payable. Typically, entry and exit load range from 1% to 2%. It could be
worth paying the load, if the fund has a good performance history.

No-load funds- A no load funds are one that doesn’t charge a commission
for entry or exit. That is no commission is payable on purchase and sale of
unit in the fund. The advantage of a no-load funds is that the entire corpus
is put to work.

D. Other schemes:
 Tax savings schemes: Tax savings schemes offer tax

rebates to the investors under tax law prescribe from time to time. Ye
under SEC.88 of the Income Tax Act, contribution made to any equity
linked Savings scheme (ELSS) are eligible for rebates.

 Index schemes: Index schemes attempt to replicate the

performance of a particular index such as the BSE Sensex or the NSE

50. The portfolio of these schemes will consist of only those stock that
consists the index. The percentage of each stock to the total holding
will be identical to the stock index weightage. And hence the return
from such schemes would be more or less equivalent to those of the
index.
Sector Specific Schemes:
These are the fund schemes which invest in the securities of only those sector

or industries as specified in the offer documents. e.g. Pharmaceuticals,

software, fast moving consumer goods (FMCG), petroleum stocks etc. The

return in these funds are dependent on the performance of the respective

sector/industries. While these funds may give higher returns, they are riskier

compared to diversified funds. Investors need to keep a watch on the

performance of those sector/industries and must exit an appropriate time.

 WORKING OF MUTUAL FUNDS

The mutual fund Collects money directly or through brokers from investors.
The money is invested in various instruments depending on the objective of the
scheme. The income generated by selling securities or capital appreciation of
these securities is passed on to the investors in proportion to their investment in
the scheme. The investment is divided into units and the value of the units will
be reflected in the Net Assets Value or NAV of the units. NAV is the market
value of the assets of the scheme in the minus it’s liabilities. The per unit NAV
is the net value assets of the scheme divided by the number of units outstanding
on the valuation date. Mutual fund companies provide daily net assets value of
their schemes to their investors. NAV is important as it will determine the price
at which you buy or redeem the unit of the scheme. Depending on the load
structure of the scheme, you have to pay entry or exit load.

Structure of Mutual Fund:

India has a legal framework within which mutual fund have to be constituted.
In India open and close ended fund operate under the same regulatory and
structure i.e. as unit trust. A mutual fund in India is allowed to issue open end
and close end Schemes under a common legal structure. The structure that is
required to be followed by any mutual fund in India is laid down under SEBI
(mutual fund) Regulations 1996.
The Fund Sponsor:

Sponsor is defined under SEBI regulations as any person who, acting alone or
in combination of another corporate body established a mutual fund. The
sponsor of the mutual fund is akin to the promotor of a company as he gets the
fund registered with SEBI. The sponsor forms a trust and appoint a board of
trustees. The sponsor also appoints the assets management company as fund
managers. The sponsor either directly or acting to through the trustee will also
appoint a custodian to hold fund assets. All these are made in accordance with
the regulation and guidelines of SEBI.

As per SEBI guidelines, for the person to qualify as a sponsor he most

contributes at least 40% of the net worth of the asset’s management company
and possess a sound financial track record over 5year prior to registration.

Mutual Fund as Trusts:

Mutual fund in India is constituted in the form of public trust act, 1882. The
funds sponsor act as a settler of the trust, contributing to its initial capital and
appoint a trustee to hold the assets of the trust for the benefits of the unit holders,
who are the beneficiaries of the trust.

The fund them invites investors to contribute their money in common pool, by
scribing to units issued by various schemes established by the trust as evidence
of their beneficial interest in the fund.

It should be understood that the fund should be just off passed through vehicle.
Under the Indian trust act the trust of the fund has no independent legal capacity
itself, rather it is the trustee or the trustees who have the legal capacity and
therefore all acts in relation to the trust are taken on its behalf by the trustees.
In legal parlance the investor on the unit holder are the beneficial owner of the
investment held by the trusts, even as these investments are held in the name of
the trustees on a day-to-day basis. Being public trust, Mutual fund can invite
and number of investors as beneficial owner in their investment schemes.

Trustees:
Trust is created through a document called the trust deed that is executed by the
fund sponsor in favors of the trustees. The trust and the mutual fund managed
by a board of trustees, a body of individuals or a trust company-a corporate
body. Most of the funds in India are managed by board of trustees. While the
board of trustees are governed by Indian trust act, where the trust our corporate
body, it would also require to complete with the companies Act 1956. The board
of the trust company, as an independent body act as a protector of the unit holder
interest. The trustee does not directly manage the portfolio of securities. For
this specialist function, the appoint the asset Management company. They
ensure that the fund is managed by ht AMC as per the defined objective and in
accordance with the trust deeds and SEBI regulations.

The Assets Management Companies:

The role of an asset management companies (AMC)is to act as the investment
manager of the trust under the board supervision and guidance of the trustees.
The AMC is required to be approved the registered with SEBI as an AMC. The
AMC of mutual fund must have net worth of at least rupees 10 crore at all times.
Director of AMC, both independent and non-independent, should have a
dedicated professional expertise in financial services and should be individual
of high moral standing, a condition also applicable to other key personnel of
the AMC. The AMC cannot act as a trustee of any other Mutual Fund. Besides
its role as a fund manager, it may undertake a specified activity such as advisory
services and financial consulting, provide these activities are run independent
of one another at the AMCs resources (such as personal, system, etc.) are
properly segregated by the activity. The AMC must always act in the interest
of the unit holder and report to the trustees with respect to its activities.

Custodian and Depositories:

Mutual fund is in the business of buying and selling of securities in a large
volume. Selling these securities in term of physical delivery and eventual
safekeeping is speculated activity. The custodian is appointed by the board of
trustees for safe keeping for securities or participating in any clearance system
through approved depository companies on behalf of the mutual fund and it
must fulfill its responsibilities in accordance with its agreement with the mutual
fund. The custodian should be an entity independent of the sponsors and is
required to be registered with SEBI. With the introduction of the concept of
dematerialization of shares that dematerialized share are kept in the depository
participant while the custodian holds the physical securities. Thus, deliveries of
a fund securities are given or received by a custodian or a depository participant
at the instructions of the AMC, although under the overall direction and
responsibility of the trustees.

Bankers:
A Fund activity involve dealing in money on a continuous basis primarily with
respect to buying and selling units, paying for investment made, receiving the
proceeds from sale of the investment and discharging its obligation towards
operating expenses. Thus, the funds banker plays an important role to determine
quality of service that the fun give the timely delivery of remittance etc.
Transfer Agents:
Transfer agents are responsible for issuing and redeeming units of mutual fund
and provide other related services such as preparation of transfer document in
updating investor records. A Fund may choose to carry out its activity in house
and charge the scheme for the services at a competitive market rate. Where an
outside transfer agent is used, the fun investor will find the agent to be an
important interface to deal with, since all the investor services that a fund
provide are going to be dependent on the transfer agent.

Regulatory Structure of Mutual Funds in India:

The structure of mutual fund in India is guided by the SEBI regulation 1996.
This regulation makes it mandatory for mutual fund to have three structure of a
sponsor trustee and assets management company. The sponsor of the mutual
fund and appoint the trustees. The trustees are responsible to the investor in
mutual fund and appoint the AMC for managing the investment portfolio. The
AMC is the business face of mutual fund, as it manages all the affair of mutual
fund. The AMC and the mutual fund have to be registered with SEBI.

SEBI Regulations:
 As far as mutual fund is concerned, SEBI formulate policies and regulate
the mutual fund to protect the interest of investors.
 SEBI notified regulation for the mutual fund in 1993. Thereafter, mutual
fund sponsored by private sector entities are allowed to enter the capital
market.
 The regulation was fully revised in 1996 and have been amended
thereafter from time to time.
 SEBI has also issued guideline to the mutual fund from time to time to
protect the interest of investors.
 All Mutual funds whether promoted by public sector or private sector
entities including those promoted by foreign entities are governed by the
same set of regulation. The risk associated with the scheme launched by
the mutual fund sponsor by these entities are of similar type. There is no
distinction in regulatory requirement for these mutual funds and all are
subjected to monitoring and inspection by SEBI.
 SEBI regulation required at least two third of the director of trustee
company or board of trustees must be independent i.e. this should not be
associated with the sponsor.
 Also 50% of the director of AMC must be independent. All mutual fund
is required to be registered with SEBI before they launch any schemes.
 Further SEBI regulation, inter-alia, stipulate that MFs cannot guarantee
return in any scheme and that each Scheme is subjected to 20:25 condition
[i.e. minimum 20investors per scheme and one investor can hold more
than 25%stake in the corpus in that one scheme]
 Also, SEBI has permitted MFS to launch schemes overseas subject
various registration and also to launch scheme liked real estate, options
and future, commodities etc.
Association of Mutual Fund in India (AMFI):

With the increase in mutual fund players in India, a need for mutual fund
association in India was generated to function as a nonprofit organization.
Association of mutual fund in India (AMFI) was incorporated on 22 nd August
1995.

AMFI is an apex body of all assets management companies (AMC) which has
been registered with SEBI. Till date all the AMCs are that have launched
mutual fund scheme are its members. Its functions under the supervision and
guideline of its board of directors.

Association of mutual fund India has brought down the Indian mutual fund
industry to a professional and healthy market with ethical lines enhancing and
maintaining standard. It follows the principle of both protecting and promoting
the interest of mutual funds as well as their unitholders.

The Objective of Association of Mutual Fund in

India:

The association of mutual funds of India worked with 30 register AMC of the

country. It has certain define objective which juxtapose the guidelines of its

board of directors. The objective is follows:

 This mutual fund association of India maintains high professional and

ethical standards in all area of operation of the industry.

 It also recommended and promote the top-class business practice and code

of conduct which is followed by member and related people engaged in

the activity of mutual fund and assets management. The agencies who are

by any means connected or involved in the field of capital market and

financial services also involved in this code of conduct of the association.

 AMFI interact with SEBI and work according to SEBI guideline in the

mutual fund industry.

 Association of mutual fund of India do represent the Government of India,

the Reserve Bank of India and other related bodies on matters relating to

the mutual fund industries.

 It develops a team of well qualified and trained agent distributors. It

implements a program of training and certificate of for all intermediaries

and other engaged in the mutual fund industries.

 AMFI undertakes all India awareness program for investor in order to

promote proper understanding of the concept and working of mutual fund.

 At last but not the least association of mutual fund of India also

disseminate information on mutual fund industry and Undertakes studies

and research that directly or in association of other bodies.

 AMFI publications: AMFI publish mainly two type of

bulletin. One is on the monthly basis and the other is quarterly. This
publication is of the great support for the investor to get any information
of know-how of their parked money.
 MUTUAL FUNDS IN INDIA: -

In 1963, the day the concept of mutual fund took birth in India. Unit Trust of
India invited investors or rather to those who believe in, to park their money in
UTI Mutual Fund.

For 30 years it goaled without a single second player. Through the 1988 years
saw some new mutual fund companies, but UTI remained in Monopoly
position.

The Performance of mutual funds in India in the initial phase was not even
closer to satisfactory level. People really understood, and of course investing
was out of questions. But yes, some 24 million shareholders were
accommodated with guaranteed high return by the beginning of liberalization
of the industry in 1992. This good record of UTI became marketing tool for
new entrants. The expectations of investors touched the sky in profitability
factor. However, people were miles away from the preparedness of risk factor
after the liberalization.

The net assets value (NAV) of mutual In India decline when stock prices
started falling in the year 1992. Those days, the market regulation did not allow
portfolio shift into alternative investment. There was rather no choice apart
from holding the cash or to further continue investing in shares. One more thing
to be noted, things only closed-end fund was floated in the market, the investors
dis invested by selling at a loss in the secondary market.

The performance of mutual fund in India suffered qualitatively. The 1992 stock
market scandal, the losses by this investment and of course the lake of
transparent rules in the whereabout rock confidence among the investors.
Partially owing to a relatively week stock market performance, mutual fund has
not yet covered, with funds trading at an average discount of 1020 % of their
net assets value.

The securities and exchange board of India (SEBI) came out with
comprehensive regulation in 1993 which define the structure of mutual fund
and assets management companies for the first time.

The supervisory authority adapted a set of measure to create a transparent and

competitive environment in mutual funds. Some of them were like relaxing
investment restriction into the market, introduction of open-ended fund, and
paving the gateway of mutual fund to launch pension scheme.

The measure was taken to make mutual fund the key instrument for long-term
saving, the more the variety offer the quantitative will be investors.

Several private sector Mutual funds where launch in 1993 and 1994. The share
of the private players has rising rapidly since them. Currently there are 34
Mutual Fund organization in India managing 102000 crores.

At last to mention, as long as mutual fund companies are performing with lower
risk and higher profitability within a short span of time, more and more people
will be inclined to invest until and unless they are fully educated with the do’s
and don’ts of mutual fund.

Mutual fund industry has seen a lot of changes in past few years with
multinational companies coming into the countries. Bringing in their
professional expertise in managing funds worldwide. In the past few months
there has been a consolidation phases going in the mutual fund industry in India.
Now investor have a wide range of scheme to choose from depending on their
individual profiles.
 Mutual Fund Companies in India:
The concept of mutual fund in India date back to the year 1963. The era between

1963 and 1987 mark the existence of only one mutual fund company in India

with Rs.67 assets under management (AUM), by the end of its Monopoly era,

the unit Trust of India (UTI). By the end of the 80s decade, few other mutual

fund companies in India took their position in mutual fund market.

The new in trees of mutual fund companies in India where SBI Mutual Fund,

can bank Mutual Fund, Punjab National Bank Mutual Fund, Bank of India

Mutual Fund.

The succeeding decades to a new horizon in Indian mutual fund industry. By

the end of 1993, the total AUM of industry was Rs.470.04 bn. The private sector

fund started penetrating the fund families. In the same year the first Mutual

Fund regulation came into existence with re-registration all mutual fund expects

UTI. Regulation were further given revised shape in 1996.

Kothari Pioneer was the first private sector mutual fund company in India

which has now merged with Franklin Templeton. Just after 10 year with private

sector player penetration, total assets Rose up to Rs. 1218.05 billion. Today

there are 33 mutual fund companies in India.

Major mutual fund companies in
India

 ABN AMRO Mutual Fund

 Birla Sun Life Mutual Fund
 Bank of Baroda Mutual Fund
 HDFC mutual fund
 HSBC Mutual Fund
 ING Vysy Mutual Fund
 Prudential ICICI Mutual Fund
 State Bank of India Mutual Fund
 TATA Mutual Fund
 Unit Trust of India Mutual
 Reliance Mutual Fund
 Standard chartered Mutual Fund
 Franklin Templeton Indian Mutual Fund
 Morgan Stanley mutual fund in India
 Escort Mutual Fund
 Alliance capital Mutual Fund
 Benchmark Mutual Fund
 Canbank Mutual Fund
 Chola Mutual Fund
 LIC Mutual Fund
 GIC Mutual Fund
For the first time in the history of Indian mutual fund industry, unit trust of
India mutual fund has slip from the first slot. Earlier, in May 2006 the prudential
ICICI Mutual Fund was ranked at the number one slot in term of total assets.

In very next month, UTIMF head regained it top position as the largest fund
house in India.

Now, according to the current pegging order and the date release by association
of mutual fund in India (AMFI), the Reliance Mutual Fund, with a January end
AUM of Rs. 39020 crores have become the largest mutual fund in India.

On the other hand, UTIMF, with an AUM of Rs. 37,535 crores have gone to
second position. The prudential ICICI MF has believed to the third position
with the AUM of rs.34,746 crores.

It happened for the first time in last one year that a private sector mutual fund
house has reached to the top slot in term of assets under management. In the
last one year to January, AUM of the Indian fund industry had risen by 64% to
rupees 3.39 lakh crore.

According to data released by association of mutual fund in India, the combined

average AUM of the 35 fund houses in the country increased to Rs.5,512.99
billion in April compared to Rs. 4,932.86 billion in March.

Reliance MF maintain its top position as the largest fund house in the country
with Rs.74.25 billion jumps in AUM to Rs.883.87 billion at April End.

The second largest fund house HDFC MF gained Rs. 59.24 billion in its AUM
at Rs.638.80 billion. ICICI prudential and state-run UTI MF added Rs.46.16
billion respectively to their assets last month. ICICI prudential AUM stood
Rs.560 49 billion at the end of April, while UTI MF had assets worth Rs. 544.89
billion.
RELIANCE MUTUAL FUNDS Vs UTI
MUTUAL FUNDS: -

Reliance Mutual Funds-

Reliance Mutual fund was established as trust under Indian trust act 1882. The
sponsor of RMF is Reliance capital limited and Reliance capital trustees
company limited is the trustees. It was registered on June 30, 1995 as Reliance
capital mutual fund which was changed on March 11 2004. Reliance Mutual
Fund was form for launching of various scheme under which unit are issued to
the public with the view to contribute to the capital market and to provide
investor to opportunities to make investment in diversified and securities.

RMF is one of India’s leading Mutual Fund, with average assets under
management (AAUM) of Rs.88,388 crores (AAUM for 30 th April 09) and an
investor base of over 71.53lacs. Reliance Mutual Fund, a part of Reliance-Anil
Dhirubhai Ambani group, one of the fastest growing mutual funds in the
country offers investors of well-rounded portfolio of products to meet varying
investor requirement and has a presence in 118 cities across the countries.

Reliance Mutual Fund consistently endeavor to launch innovative product and

customer service initiatives to increase value to investors. Reliance Mutual fund
scheme are managed by Reliance capital asset Management limited, a
subsidiary of Reliance capital limited, which hold 93.37% of the paid-up capital
of RCAM, the balance paid up capital being held by minority shareholder.
Sponsor: Reliance capital limited

Trustees: Reliance capital trustee company limited

Investment manager: Reliance capital assets Management limited

The sponsor, the trustee and the investment manager are incorporated under the
companies Act 1956.

Vision statement-
“To be a globally respected wealth creative with an emphasis on customer
care and a culture of good corporate governance.”

Mission statement-
To create and nature world-class high-performance environment I’m at
delighting our customer.

The Main Objective of The Trust:

 To carry on the activity of a mutual fund as may be permitted at law and
formulate and device various collective scheme of saving and investment
for people in India and abroad and also ensure liquidity of investment for
the unit holders.
 To deploy funds thus raised so as to help the unit holder earn reasonable
return on their savings and

 To take such step as may be necessary from time to time to realize the
effects without any limitation.
Schemes: -
A. Equity/ growth schemes-
The aim of growth Fund is to provide capital appreciation over the
medium to long term. Such schemes normally invest a major part of
their Corpus in equities. Such funds have comparatively high risk.
Growth schemes are good for investor having a long-term Outlook
seeking appreciation over a period of time.

1. Reliance infrastructure fund (open ended equity)

The primary investment objective of the scheme is to generate long-
term capital appreciation by investing predominantly in equity and
equity related instrument of companies engaged in infrastructure
(airports, construction, telecommunication, transportation) and
infrastructure related sector and which are incorporated or have their
area of primary activities, in India and the secondary objective is
to generate consistent return by investing in debt and money market
securities.
Investment strategy:
The investment focus would be guided by the growth potential and
other economic factor of the country. The fund aims to maximize
long-term total return by investing in equity and equity related
securities which have their area of primary activity in India.

2. Reliance quant plus fund/Reliance index fund (open ended

equity)

The investment objective of the scheme is to generate capital

appreciation through investment in equity and equity related
instruments. The scheme will seek to generate capital appreciation
 by investing in an active portfolio of stock select from S&P CNX
Nifty on the basis of the mathematical model. An investment fund
that approach stock selection process based on quantitative analysis.

3. Reliance Natural Resources (Open Ended Equity)

The primary investment objective of the scheme is to sick to generate
capital appreciation and provide long-term growth opportunity by
investing in companies principally engaged in the discovery,
development, production or distribution of natural resources and the
secondary objective is to generate consistent return by investing in debt
and money market securities.

Natural resources may include for example, energy sources, precious

and other metals, forest products, food and agriculture, and other basic
commodities.

4. Reliance Equity Advantage Fund (Open Ended Diversified

Equity)
The primary investment objective of the scheme is to seek to
generate capital appreciation and provide long-term growth
opportunities by investing in a portfolio predominantly of equity
and equity related instrument with investment generally in s&p
CNX Nifty stock and the secondary objective is to generate
consistent-return by investing in debt and money market securities.
5. Reliance Equity Linked Saving Fund (10-Year Close Ended
Equity)

The primary objective of the scheme is to generate long-term capital

appreciation from a portfolio that is invested predominantly in
equities along with Income Tax benefit.
 The scheme may invest in equity share in foreign companies and
instrument convertible into equity share of domestic or foreign
companies and in derivative as may be permissible under the
guideline issued by SEBI and RBI.

6. Reliance Equity Fund (Open Ended Diversified Equity)

The primary investment objective of the scheme is to seek to

generate capital appreciation and provide long-term growth
opportunities by investing in a portfolio constituted of equity and
equity related scheme of top 100 companies by market
capitalization and of companies which are available in the
derivatives segment from time to time and secondary objective is to
generate consistent return by investing that and money market
securities.

7. Reliance Tax Saver (ELSS) Fund (Open Ended Equity)

The primary objective of the scheme is to generate long-term capital
appreciation from a portfolio that is invested predominantly in equity
and equity related instrument.

Tax benefit:
 Investment up to Rs 100000 by the eligible investor in this fund
would enable you to avail the benefit under section 80c (2) of the
Income Tax Act 1961.
 Dividend received will be absolutely tax free
 The dividend distribution tax for equity scheme is also nil.
8. Reliance Growth Fund (Open-Ended Equity)
The primary investment objective of the scheme is to achieve long
growth of capital by investment in equity and equity related securities
through a research-based investment approach.

9. Reliance Vision Fund (Open Ended Equity)

The primary investment objective of the scheme is to achieve long
growth of capital by investment in equity and equity related
securities through a research-based investment approach.
10. Reliance Opportunities Fund (Open Ended Diversify
Equity)
The primary investment objective of the scheme is to seek to generate
capital appreciation and provide long-term growth opportunity by
investing in a portfolio constituted of equity securities and equity
related securities and the secondary objective is to generate constant
written by investing in debt and money market securities.

11. Reliance NRI equity fund (open ended diversified equity)

The primary investment objective of the scheme is to generate of

return by investing in equity or equity related instrument timely
drawn from the companies in BSE 200 index.
12. Reliance Long Term Equity Fund (Open Ended Diversify
Equity)
The primary investment objective of the schemes is to seek to
generate long-term capital appreciation and provide long-term
growth opportunity by investing in a portfolio constituted of equity
and equity related securities and derivatives and the secondary
objective is to generate consistent return by investing in debt and
money market securities.
 It is a 36-month close and diversify and equity fund with an
automatic conversion into an open-ended scheme on expiry of 36
month from the date of allotment. It aims to maximize return by
investing 70-100 % in equities focusing in small and mid-cap
companies.

13. Reliance regular savings fund (open ended equity)

Reliance regular saving fund provide you the choice of investing in
debt equity or hybrid option with a pertinent investment objective
and pattern for each option. As little of Rs 100 every month in the
Reliance regular savings fund.
For the first time in India, your mutual fund offers instant cash
withdrawal facility on your investment at any visa enable ATM near
you. With a choice of the three investment options, the fan is truly
the smart new way to invest.

B. Debt/income schemes:
The aim of the income fund is to provide regular and steady income of
investors. Such scheme generally invests in fixed income securities such as
bonds, corporate debenture, government securities and money market
instruments. Such funds are less risky compared to equity scheme. These funds
are not affected because of fluctuation in equity markets. However,
opportunities of capital appreciation are also limited in such funds. The NAVs
of such funds are affected because of change in interest rate of the countries. If
the interest rates fall, NAVs of such funds are likely to increase in short run and
vice versa. However, long-term investors may not bother about this fluctuation.
 1. Reliance Monthly Income Plan
(As open-ended fund, monthly income is not assured and is subject to the
availability of distribution surplus) the primary investment objective of
the scheme is to generate regular income in order to make regular
dividend payment to unitholders and the secondary objective is growth of
capital.
2. Reliance Gilt Securities Fund-Short-Term Gilt Plan and Long-Term
Gilt Plan
(Open ended government securities scheme) the primary
objective of the scheme is to generate optimal credit risk free return by
investing in a portfolio of securities issued and generated by the central
government and the state government.
3. Reliance Income Fund
The primary objective of the scheme is to generate optimal return
consistent with moderate level of risk. This income may be completed by
capital appreciation of the portfolio. Accordingly, investment shall
predominantly made in debt and money market instruments.
4. Reliance Medium Term Fund
The primary investment objective of the scheme is to generate regular
income in order to make regular dividend payment to unit holder and the
secondary objective is growth of capital.

5. Reliance Short Term Fund

The Primary Investment Objective of The Scheme Is to Generate Stable Return
for Investor with Short Investment Horizon by Investing in Fixed Income
Securities of Short-Term Maturity.

6. Reliance liquid fund

The primary investment objective of this is to generate optimal return
consistent with moderate level of risk and high liquidity. Accordingly,
 investment shall predominantly be made in debt and money market
instruments.

7. Reliance Floating Rate Fund

The primary objective of the scheme is to generate regular income through
investment in a portfolio comparing subsequently of floating rate debt securities
including floating rate securities debt and money market instruments and fix
rate debt instrument Swapped for floating rate return. Scheme shall also invest
in fixed rate debt securities including fix rate securities that money market
instruments and floating rate debt instruments swapped for fix return.

8. Reliance NRI Income Fund

The primary investment objective of the scheme is to generate optimal return
consistent with moderate level of risk. This income may be completed by
capital appreciation of the portfolio. Accordingly, investment shall
predominantly be made in debt instrument.

9. Reliance Liquidity Fund

The investment objective of the scheme is to generate optimal return consistent
with moderate level of risk and high liquidity. Accordingly, investment shall
predominantly be made in debt and money market instruments.

10. Reliance Interval Fund

Primary investment objective of the scheme is to seek to generate regular return
of growth of capital by investing in a diversifying portfolio.

11. Reliance liquid plus fund

The investment objective of the scheme is to generate optimal return
consistent with moderate level of risk and liquidity by investing in debt
securities and money market securities.
 14. Reliance fixed horizon fund-1
The primary investment objective of this thing is to seek to generate regular
return and growth of capital by investing in diversifying portfolio.

15. Reliance fixed horizon fund 2

The primary investment objective of the scheme is to seek to generate regular
return and growth of capital by investing in diversified portfolio.
16. Reliance Fixed Horizon Fund 3
17. Reliance Fixed Tenure Fund
18. Reliance Fixed Horizon Fund Plan C
19. Reliance Fixed Horizon Fund 4th
20. Reliance Fixed Horizon Fund 5
21. Reliance Fixed Horizon Fund 6
22. Reliance Fixed Horizon Find 7

C. Sector specific schemes:

These are the funds scheme which invest in the securities of specified
sector or industries like pharmaceutical software petroleum stocks etc.
The return in these funds are dependent on the performance of the
respective sectors. While these funds may give higher returns, there are
riskier compared to diversify funds.

a. Reliance Banking Fund

Reliance Mutual Fund has an open-ended banking sector a scheme
which has the primary investment objective to generate continuous
return by activity investing in equity, equity related or fixed income
securities of banks.
b. Reliance Diversified Power Sector Fund
Reliance diversified power sector scheme is an open-ended power
sector scheme. The primary investment objective of the scheme is
to seek to generate consistent return by activity investing in equity,
 equity related or fixed income securities of power and other
association companies.

c. Reliance Pharma Fund

Reliance Pharma fund is an open-ended Pharma factory scheme.
The primary investment objective of the scheme is to generate
consistent return by investing in equity, equity related or fixed
income securities of farmer and other associated companies.
d. Reliance media and entertainment fund
Reliance media and entertainment fund is an open-ended media and
entertainment sector scheme.
The primary investment objective of the scheme is to generate
consistent return by investing in equity related of fixed income
securities of media and entertainment and other associated
companies.

D. Reliance gold exchange traded fund

The investment objective is to seek to provide return that closely
responded to returns provided by price of gold through
investment in physical gold and gold related securities as
permitted by regulator from time to time. The performance of the
scheme may differ from the domestic prices of gold due to
expenses and another related factor.
Unit Trust of India Mutual Fund

Unit Trust of India was created by UTI act passed by the parliament in 1963.
For more than two digit it remains the sole vehicle for investment in the capital
market by the Indian citizens. In mid-1980 public sector bank where allowed to
open mutual funds. The real vibrancy and competition in MF industries came
with the setting up of the regulations SEBI and its laying down the MS
regulation in 1993. UTI maintain its preeminent place till 2001, when a massive
decline in the market indices and negative investor sentiment after Ketan
Parekh scheme created doubt about the capacity of UTI to meet its obligation
to the investors. This was further compounded by two factors: namely its
flagship and largest scheme us-64 was sold and repurchase not at entrance and
NAV but an artificial price and it assured return scheme had promised return as
high as 18 % over a period going up two decades.
In order to distance government running a mutual fund the ownership was
transferred to four institution namely SBI, LIC, BOB and PNB, each owing
25%. UTI lost its market dominance rapidly and by end of 2005, when the new
share holder actually paid the consideration money to government its market
share had come down to close to 10%.

A new board was constituted and a new management inducted. Systematically

a study of its problem role and function was carried out with the help of a
reputed international consultant. Once again UTI has emerged as a serious
player in the industry. Some of the fun have won famous award, including the
best infra fund globally from Lipper. UTI has been able to benchmark its
employee compensation to the best in the market.
Besides running domestic MF schemes UTI AMC is also are registered
portfolio manager under the SEBI (portfolio manager) regulations.
This company run two successful funds with large international investor being
active participants. UTI has also launched a private equity infrastructure fund
along with HSH Nord Bank of Germany and Shinseki Bank of Japan.

Vision:
To be the most preferred Mutual Fund

Mission:
 The most trusted brand admired by all stakeholders.
 The largest and most efficient money manager with global
presence
 The best in class customer service provider
 The most preferred employer
 The most innovative and best wealth creator
 A socially responsible organization known for best corporate
governance

Assets under management:

UTI Assets Management company limited
Sponsor:
 State Bank of India

 Bank of Baroda

 Punjab National Bank

 Life Insurance Corporation of India

Trustees: UTI trustee co limited

Reliability:
UTI MF has consistently reset and upgrade transparency standard. All
the branches UFCs and register office are connected on a robust IT
network to ensure cost effective with and efficient service. All these
have evolved UTI MF position as a dynamic responsive, restricted,
efficient and transparent entity, full complaint with SEBI regulation.

Schemes:
A. Equity fund
1. UTI Energy Fund (Open Ended Fund)
Investment will be made in stocks of those companies
engaged in the following are:

 Petro sector-oil and gas product and processing

 All type of power generation companies
 Companies related to stories of energy
 Companies manufacturing energy development
equipment related (like petrol and power)
 Consultancy finance companies

2. UTI Transportation and Logistics Fund

(Auto Sector Fund) (Open Ended Fund)
Investment objective is capital appreciation through
investment in stock of the companies engaged in the
transportation and logistics sector. At least 90% of the
funds will be invested in equity and equity related
 instrument. At least 80% of the fund will be invested in
equity and equity related instrument of the companies
principally engaged in providing transportation service,
companies principally engaged in the design, manufacture,
distribution or seal of transportation equipment and
companies in the logistics sector. Up to 10% of the fund
will be invested in cash market instrument.

3. UTI Banking Sector Fund (Open Ended

Fund)
An open-ended Equity Fund with the objective to provide
capital appreciation through investment in the stock of
companies engaged in the banking and financial services
activities.

4. UTI Infrastructure Fund

An open-ended Equity Fund with the objective to provide
capital appreciation through investing in the stock of the
companies engaged in the sector like metals building
material oil and Gas Power chemical engineering etc. The
fund will invest in the stocks of the companies which form
part of infrastructure industries.

5. UTI Equity Tax Saving Plan

An open-ended equity fund investing a minimum of 80% in
equity and equality related instrument. It aims to enabling
member to avail tax rebate under section 80c of the IT Act
and provide them with the benefit of growth.

6. UTI Growth Sector Fund Pharma

An open-ended fund which exactly invest in the equities of
the Pharma and healthcare sector companies. This one is on
 one of the growth sector Fund aiming to invest in
companies engaged in business of manufacturing and
marketing of bulk drug formulation and health care product
and services.

7. UTI Growth Sector Fund Services

An open-ended fund which invest in the equity shares of
the service sector companies of the country. One of the
growth sector Fund aiming to provide growth of capital
over a period of time as well as to make income distribution
by investing a point in a stock of companies engaged in
service sector such as banking finance insurance education
training telecom travel entertainment hotels etc.

8. UTI Growth Sector Fund Software

Open ended fund which invest exclusively in equities of the
software sector companies of the country. One of the
growth sector Fund aiming to invest in equity share of
companies belonging to information technology sector to
provide returns to investors through capital growth as well
as through regular income distribution.

9. UTI Master Equity Plan Unit Scheme

The scheme primarily aims to securing for the investor
capital appreciation by investing the fund of the scheme in
equity share of companies with good growth prospects.

10. UTI Master Plan Unit Scheme

An open-ended Equity Fund with an objective of long-term
capital appreciation through investment in equities and
 equity related instrument convertible debenture derivative
in India and also in overseas market.

11. UTI Master Value Fund

An open-ended equity fund investing in stocks which are
currently under value to their future gaming potential and
carry medium rest profile to provide capital appreciation.

12. UTI Equity Fund

UTI equity fund is open ended equity scheme with their
objective of investing at least 80% of its fund in equity and
equity related instrument with medium to high risk profile
at up to 20% in debt and money market instruments with
low add to medium risk profile.

13. UTI Top 100 Fund

An open-ended equity fund for investment in equity shares,
convertible and non-convertible debenture and other capital
and money market instruments with a provision to invest up
to 50% its Corpus in PSUs equity and equity related
products. The fund aims to provide unique holder capital
appreciation and income distribution.

14. UTI Master Share Unit Scheme

An open-ended equity fund aiming to provide benefit of
capital appreciation and income distribution through
investment in equity.

15. UTI Midcap Fund

An open-ended Equity Fund with the objective to provide
capital appreciation by investing primarily in midcap stock.
16. UTI MNC Fund
An open-end Equity Fund with the objective to invest
predominant Lee in the equity share of multinational
company in diverse sector such as FMCG pharmaceutical
engineering etc.

17. UTI Dividend Yield Fund

It aims to provide medium to long term capital gain and
dividend distribution by investing predominantly in equity
and equity related instrument which offer high dividend
yield.

18. UTI Opportunities Fund

This is considered to generate capital appreciation and
income distribution by investing the fund of the scheme in
equity share and equity related instrument. The focus of the
scheme is to capitalize on opportunity arising in the market
by responding the dynamically change Indian economy by
moving it investment among different sector by privilege
trend changes.

19. UTI Leadership Equity

This is key to generate capital appreciation and income
distribution by investing the funds in a stock that are leader
in their respective industries or sector.

20. UTI Contra Fund

An open-ended equity scheme with the objective to provide
long-term capital dividend distribution to investment in
listed equity and equity related instrument. The fund offers
an opportunity to benefit from the impact of non-rational
 investor behavior by focusing on a stock that are currently
undervalued because of emotional and behavioral pattern
present in stock market.

21. UTI Spread Fund

The investment objective of the scheme is to provide capital
appreciation and dividend distribution through it was
opportunities arising out of price differences between the
cash and derivatives market by investing predominantly in
equity and equality related securities their weights and the
balance portion in debt securities. However, there can be no
assurance that the investment objective of the scheme will
be released.

22. UTI Wealth Builder

The objective of the scheme is to achieve long-term capital
appreciation by investing predominantly in a diversify
portfolio to equity and equity related instrument.

23. UTI Long Term Advantage Fund

The investment objective of the scheme is to provide
medium to long term capital appreciation along with
Income Tax benefit.

24. UTI India Lifestyle Fund

The investment objective of the scheme is to provide long-
term capital appreciation for income distribution from a
diversified portfolio of equity and equity related
instruments of companies that are expected to benefit from
changing Indian demographics, Indian lifestyle and rising
consumption pattern. S
B. Index Fund
1. UTI Master Index Fund
UTI MF is an open-ended passive Fund with the primary
investment objective to invest in securities of companies
comparing the BSE Sensex in the same way that is as these
companies have in BSE Sensex. The fund strives to
minimize performance difference with the Sensex by
keeping the tracking error to the minimum.

2. UTI Gold Exchange Traded Fund

To endeavor to provide returns that before expenses closely
track the performance and yield of gold. However, the
performance of the scheme may differ from the underlying
assets due to ranking error. There can be no assurance or
guarantee that the investment objective of UTI gold ETF
will achieve.

3. UTI Sunders
To provide investment return that before expenses closing
cross bonded to the performance and belt of the basket of
securities underlying the S&P CNX Nifty index.

C. Assets Fund
UTI Variable Investment Scheme
UTI VIS ILP is an open-ended scheme with the objective of
providing the investor with a product that would enable them to
diversify their ways through a suitable allocation between debt
and equity as its classes and thereby generate superior risk
adjusted return through a dynamic asset allocation process
D. Balanced fund
1. UTI Mahila Unit Scheme
To invest in a portfolio of equity or equity related securities
and debt and money market instruments with a view to
generate reasonable income with moderate capital
appreciation. The assets allocation will be debt, minimum
70% maximum 100% equity, minimal 0% maximum 30%.

2. UTI Balanced Fund

An open and balanced fund investing between 40% to 75%
in equity or equity related securities and the balance in bed
with a view to generate regular income together with capital
appreciation.

3. UTI Retirement Benefit Pension Fund

The objective of the scheme is to provide pension to
investors particularly self-employed person after they attain
the age of 58 years, in the form of periodical gas flow up to
the extent of repurchase value of their holding through a
systematic withdrawal plan.

4. UTI Unit Link Insurance Plan

To provide return through growth in the NAV all through
dividend distribution and reinvestment thereof.

5. UTI CCP (Children Career Plan)

Advantage Fund
An open-ended balanced Fund with 70-100% investment in
equity. Investment can be made in the name of children up
to the age of 15 year so as to provide them after they attain
the age of 18 year, army to receive scholarship to me the
 cost of higher education or help them in setting up a
profession, practice or business or enabling them to set up
a home or finance, the cost of other social obligation.

6. UTI Charitable, Religious Trust and

Registered Society
Open ended debt-oriented income scheme with an
objective of investing not more than 30% of the fun in
equity related instrument and the balance in debt and
money market instruments with low to medium risk profit.
The skin is catering to the investment needs of charitable,
religious and educational Trust as well as registered society
with the goal of providing regular income.

E. Income Fund (Debt Fund)

1. UTI Bond Fund
Open ended 100% pure debt fund, which invest in rated corporate debt paper
and government securities with relative low risk and easily liquidity.

2. UTI Floating Rate Fund STP

To generate regular income through investment in a portfolio comprising
subsequently of floating rate debt are money market instrument and fix rate
debt or money market instruments.

3. UTI Gilt Advantage Fund LTP

To generate credit risk free return through investment in sovereign securities
issued the central and state government.
4. UTI G -SEC STP
To generate credit risk free return through investment in sovereign securities
issued the central and state government.

5. UTI G-SEC Investment Plan

An open and gilt Fund with objective to invest only in Central Government
securities including call money treasury bill and repos of wearing maturities
with a view to generate credit risk free return. While selecting the maturity
profile of the investment in government securities the need for maximization of
the return and meeting of the liquidity requirement of the scheme is kept in
view.

6.UTI treasury advantage fund

It aims to generate attractive return consistent with capital preservation and
liquidity.

a. UTI Short Term Income Fund

The scheme to generate steady and reasonable income with
low risk and high level of liquidity from a portfolio of
money market security and high-quality debt.

b.UTI Capital Protection-Oriented Scheme

The investment objective of the scheme is to endeavor to
protect the capital by investing in high quality fixed income
securities as the primary objective and generated capital
appreciation by investing in equity and equity related
instrument as secondary objective.
F. Liquid Fund
a. UTI Liquid Cash Plan
The scheme to generate steady and reasonable income with low
risk and high of liquidated from a portfolio of money market
securities and high-quality debt.

b.UTI Money Market Fund

An open ended pure that liquid plants seeking to provide high
possible income by investing in a diversifying portfolio of short-
term money market securities.
 FUTURE PROSPECT OF MUTUAL
FUNDS IN INDIA:

Financial experts believe that the future of mutual fund in India will be very
bright. It has been estimated that by March end of 2021 the mutual fund industry
of India will be reach Rs 22.26 trillion to Rs31.43trillon taking into account that
total assets of the Indian commercial bank.

 100% growth in last many years

 There are a number of foreign I am still trying to enter Indian markets
 Our saving rate is over 23% highest in the world. Only Challenging
this saving in mutual sector is required.
 Trying to curb the late trading practice
 Introduction of financial planner who can provide need-based advice
 SEBI allowing the MFs to launch commodity Mutual Fund

Looking at the past development and combine it with the current trend it can be
concluded that the future of mutual fund in India has lot of positive things to
offer to its investor.
Conclusion:

Mutual Fund now represent perhaps most appropriate investment opportunity

for most investors. As financial markets become more sophisticated and
complex, investors need a financial intermediary who provided the required
knowledge and professional expertise on successful investing. As the investor
always try to maximize the return and minimize the risk. Mutual Fund satisfy
these requirements by providing attractive returns with affordable risk. The
fund industry has already overtaken the banking industry funds being under
mutual fund management then deposit with bank. With the emergence of tough
competition in this sector mutual fund a launching a variety of schemes which
cater to the requirement of particular class of investor. Risk taker forgetting
capital appreciation should invest in growth equity scheme. Investors who are
in need of regular income should invest in income plans.

The Stock market has been rising for over three year now. This in turn has not
only protected the money invested in funds but also to help grow this
investment.

This has also instilled greater confidence among fund investors who are
investing more into the market through the MF route than ever before.

Reliance India mutual fund provides major benefit to a common man who want
to make his life better than previous.

India's largest Mutual Fund UTI still control nearly 80% of market. Also, the
mutual fund industry as a whole get less than 2% of household savings against
the 46% that go into Bank deposit. Some fund managers say this only indicate
that sector potential. If mutual fund succeeds in chipping away at Bank deposit,
even a triple digit growth is possible over the next few years.