MUTUAL FUNDS

1. MUTUAL FUND

2. INTRODUCTION
 Mutual fund is a vehicle to mobilize money from
investors, to invest in different markets and
securities, in line with the investment objectives
agreed upon, between the mutual fund and the
investors.

3. HISTORY OF MUTUAL FUND
 The mutual fund industry in India started in 1963
with the formation of Unit Trust of India (UTI) at the
initiative of the Reserve Bank of India (RBI) and the
Government of India. The objective then was to
attract small investors and introduce them to market
investments.

4. TYPES OF MUTUAL FUNDS
 Equity Funds :- These funds invest in stocks. These funds
aim to grow faster than money market or fixed income funds,
so there is usually a higher risk that you could lose money.
 Hybrid Funds :- These invest in both Equities and Fixed
Income, thus offering the best of both, Growth Potential as
well as Income Generation.
 Balanced Funds :- These funds invest in a mix of equities
and fixed income securities. They try to balance the aim of
achieving higher returns against the risk of losing money.

5. ADVANTAGES & DISADVANTAGES
 Diversification professional
management and convenience.
 Funds offers lower costs bye
virtue of there size.
 Spread many internal costs over
a large shareholder based,
allowing for economies of scales.
 Make tax plannig difficult.
 May be somewhat to track in
terms of what they actually are
investing in.
 So called non-substantial
changes in the way the funds are
managed (such as manager
switches) may not be disclosed
to investors by fund companies
in a timely manner

6. THANK YOU