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Investment in Mutual Fund

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[Type the company name] | INVESTMENT IN MUTUAL FUNDS AND SHARES –PROS AND CONS | FINANCIAL MANAGEMENT | | TO, PRATIMA TRIVEDI | 12/9/2013 |

REPORT BY-
PARITOSH SINGH FS35
PRAKRITI FS40
PANKAJ KUMAR SINGH FS34
ROMANSHU VARSHNEY FS64
RAJNEESH SHARMA FS44

TABLE OF CONTENTS
Table of Contents ACKNOWLEDGEMENT 4 A. MUTUAL FUNDS 5 I. INTRODUCTION 5 II. ROLE OF MUTUAL FUNDS IN THE FLNANCIAI, MARKET 5 III. MUTUAL FUNDS: STRUCTURE IN INDIA 5 IV. GROWTH IN MUTUAL FUND INDUSTRY 6 V. IMPACT OF THE GLOBAL FINANCIAL CRISIS 11 VI. GOVERNMENT POLICIES 11 VII. ADVANTAGES OF MUTUAL FUNDS 12  Diversification. 12  Expert Management. 12  Liquidity. 13  Convenience. 13  Reinvestment of Income. …show more content…

In this process, Indian mutual funds have emerged as strong financial intermediaries and are playing a very important role in bringing stability to the financial system and efficiency to resource allocation Mutual funds have opened new vistas to investors and imparted much-needed liquidity to the system. III. MUTUAL FUNDS: STRUCTURE IN INDIA
Mutual Funds in India follow a 3-tier structure. There is a Sponsor (the First tier), who thinks of starting a mutual fund. The Sponsor approaches the Securities &Exchange Board of India (SEBI), which are the market regulator and also the regulator for mutual funds.
Not everyone can start a mutual fund. SEBI checks whether the person is ofintegrity, whether he has enough experience in the financial sector, his net worth etc. Once SEBI is convinced, the sponsor creates a Public Trust (the Second tier) as per the Indian Trusts Act, 1882. Trusts have no legal identity in India and cannot enter into contracts, hence the Trustees are the people authorized to act on behalf of the Trust. Contracts are entered into in the name of the Trustees. Once the Trust is created, it is registered with SEBI after which this trust is known as the mutual fund. IV. GROWTH IN MUTUAL FUND INDUSTRY
The Indian Mutual fund industry has witnessed considerable growth since its inception in 1963. The assets under management (AUM) have surged to Rs 4,173 bn in Mar-09 from just Rs. 250 mn in

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