Beruflich Dokumente
Kultur Dokumente
Vishnu
Thankachan
S3 MBA
N0: 29
M u tu al Fu n d O p eration
Flow C h art
Given back to
Investo
rs
Return
That generates
Fund
Securiti
es
Which is invested in
TY P ES O F M U TU A L FU N D S
Type of
Mutual Fund
Schemes
Structure
Investment
Objective
Special
Schemes
Open Ended
Funds
Growth Funds
Industry Specific
Schemes
Close Ended
Funds
Income Funds
Index
Schemes
Balanced Funds
Sectoral
Schemes
Money Market
Funds
O P EN EN D ED S C H EM ES
Open ended Schemes are schemes which offers unit for sale
without specifying any duration for redemption.
They sell and repurchase schemes on a continuous basis.
The main feature of such kind of scheme is liquidity
C LO S ED EN D ED S C H EM ES
Growth funds
Income funds
Balanced Funds
Money Market funds
G R O W TH FU N D
IN C O M E FU N D S
B A LA N C ED FU N D
M O N EY M A R K ET FU N D S
O n th e b asis of S p ecial S ch em es
IN D U S TR Y S P EC IFIC S C H EM ES
IN D EX S C H EM ES
S EC TO R A L S C H EM ES
O TH ER S C H EM ES
Mutual funds
AMC
Custodian
Holds units
holder enters
compliant to
SEBI
Floats &
manages
new scheme
Custodian
services
M U TU A L FU N D S IN IN D IA N C A P ITA L
M A R K ET
A d van tag es of M u tu al Fu n d s
Portfolio diversification:
It enables him to hold a diversified investment portfolio even
with a small amount of investment like Rs. 2000/-.
Professional management:
The investment management skills, along with the needed
research into available investment options, ensure a much better return as
compared to what an investor can manage on his own.
Reduction/Diversification of Risks:
The potential losses are also shared with other investors.
Reduction of transaction costs:
The investor has the benefit of economies of scale; the funds
pay lesser costs because of larger volumes and it is passed on to the
investors.
S EB I R EG U LA TIO N O F A M C
General aspects
AMC shall launch no scheme unless it is approved by trustee
AMC shall publish their unaudited financial results before the expiry of one
month from close of each half year
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