Mutual Funds in India By D.V. Ingle Assistant Professor, Shrimati L.R.T. College of Commerce, Akola, Maharashtra New Century Publications New Delhi, India
Contents About the Book Author's Profile Preface Abbreviations/Acronyms v vi xiii-xv xvi 1. Mutual Funds in Historical Perspective 1-15 1.1 Mutual Fund as a Financial Service 1.2 Mutual Funds and the Indian Economy 1.3 History of Mutual Funds: World 1.4 History of Mutual Funds: India 1.4.1 First Phase (1964-1987): Emergence and Growth of Unit Trust of India 1.4.2 Second Phase (1987-1993): Entry of Public Sector Funds 1.4.3 Third Phase (1993-1996): Entry of Private Sector Funds 1.4.4 Fourth Phase (1996-2004): Growth and SEBI Regulations 1.4.5 Fifth Phase (2004 onwards): Growth and Consolidation 2. International and Indian Studies on Mutual Funds 16-44 2.1 Introduction 2.2 International Studies 2.3 Indian Studies 3. Savings and Alternative Investment l Opportunities 3.1 Introduction 3.2 Nature of Saving and Investment 3.3 Objectives of Saving and Investment 45-68
viii Mutual Funds in India 3.3.1 Tax Saving 3.3.2 Income 3.3.3 Growth of Capital 3.3.4 Safety 3.3.5 Speculation 3.4 Investment Alternatives 3.4.1 Direct Investment Alternatives 3.4.2 Indirect Investment Alternatives 3.5 Trend in Domestic Saving and Investment 3.5.1 Household Saving 3.5.2 Composition of Financial Assets in Household Saving 3.5.3 Share of Physical Assets in Household Saving 3.5.4 Public Saving 3.6 Financial System of India 3.7 Financial Markets since Liberalization 3.8 Types of Financial Markets 3.8.1 Money Market 3.8.2 Capital Market 3.9 Financial Markets Integration in India 3.10 Mutual Funds as Financial Intermediaries 4. Concept, Significance and Attributes of Mutual Funds 69-79 4.1 Concept of Mutual Fund 4.2 Significance of Mutual Funds 4.3 Advantages of Mutual Funds 4.3.1 Affordability 4.3.2 Professional Management 4.3.3 Diversification 4.3.4 Convenience 4.3.5 Cost Effectiveness 4.3.6 Liquidity 4.3.7 Tax Breaks 4.3.8 Transparency
Contents ix 4.3.9 Recordkeeping 4.3.10 Daily Unit Pricing (NAV) 4.3.11 Investors Protection 4.4 Fundamental Attributes of Mutual Fund 4.4.1 An Outstanding Long-term Return 4.4.2 Low Expenses and Low Turnover Rate 4.4.3 A Specific and Published Investment Strategy 4.4.4 No Loads 4.4.5 Fund Managers with Outstanding Record 4.4.6 High Ethical Standards and Reputation 4.4.7 Not Too Big 5. Classification of Mutual Funds 80-92 5.1 Operational Classification 5.1.1 Open-ended Schemes 5.1.2 Close-ended Schemes 5.1.3 Interval Mutual Fund Scheme 5.2 Classification as Per Portfolio 5.2.1 Equity Fund 5.2.2 Growth Funds 5.2.3 Diversified Equity Funds 5.2.4 Value Funds 5.2.5 Large-Cap Funds 5.2.6 Mid-Cap Funds 5.2.7 Sector Funds 5.2.8 Index Funds 5.2.9 Contra Funds 5.3 Classification According to Location 5.3.1 Domestic Fund Scheme 5.3.2 Offshore funds 5.4 Exchange Traded Fund 5.4.1 Advantages 5.4.2 Disadvantages 5.5 Tax Saving Schemes
x Mutual Funds in India 5.5.1 Balanced Fund 5.5.2 Fixed Term Plan 5.5.3 Debt Funds 6. Regulations and Problems of Mutual Funds 93-106 6.1 Growth of Mutual Funds 6.2 Major Players in Mutual Fund Industry 6.3 Employment Opportunities 6.4 Top of Form Innovative Product (Schemes) 6.5 Market Trends 6.6 Legal and Regulatory Framework 6.7 Features of Mutual Fund Industry in India 6.8 Problems of Mutual Funds 6.8.1 Competition with Government Schemes 6.8.2 Competition from Insurance 6.8.3 Volatility of Mutual Fund Performance 6.8.4 Tax System Encourages Short-term Objectives 6.9 Mutual Funds and the Stock Market 7. Sponsors, Trustees and Asset Management Companies of Mutual Funds 107-119 7.1 Fund Sponsor 7.2 Trustees 7.2.1 Rights and Obligations of the Trustee 7.3 Asset Management Company (AMC) 7.4 Dealer 7.5 Custodian 7.6 Registrar and Transfer Agent 7.7 Distributors 8. Unit Trust of India Mutual Fund (UTIMF) 120-130 8.1 Bifurcation of Unit Trust of India (UTI) 8.2 Trustees of UTI Mutual Fund 8.3 Assets Management Company (AMC) of UTIMF
Contents xi 8.4 Custodian of UTI Mutual Fund 8.5 Transfer Agents of UTI Mutual Fund 8.6 Objectives of UTI Mutual Fund 8.7 Investment Philosophy 8.8 Tax Implications 8.8.1 Tax on Income in Respect of Units 8.8.2 TDS on Income of Units 8.8.3 Tax on Capital Gains 8.9 Marketing 8.10 UTI MF's Tie-up with Allahabad Bank 8.11 Value Added Services of UTI Mutual Fund 8.11.1 Direct Credit 8.11.2 Online Transaction 8.11.3 Trigger Facility 9. Major Schemes of UTI Mutual Fund 131-188 9.1 UTI Banking Sector Fund 9.2 UTI Contra Fund 9.3 UTI Dividend Yield Fund 9.4 UTI Energy Fund 9.5 UTI Equity Fund 9.6 UTI India Lifestyle Fund 9.7 UTI Infrastructure Fund 9.8 UTI Leadership Equity Fund 9.9 UTI Master Index Fund 9.10 UTI Master Plus Unit Scheme 9.11 UTI Master Share Unit Scheme 9.12 UTI Master Value Fund 9.13 UTI Mid Cap Fund 9.14 UTI MNC Fund 9.15 UTI Nifty Index Fund 9.16 UTI Opportunities Fund 9.17 UTI Pharma and Healthcare Fund 9.18 UTI Notional Depository Receipts Scheme (SUNDER) 9.19 UTI Services Industries Fund
xii Mutual Funds in India 9.20 UTI Top 100 Fund 9.21 UTI Transportation and Logistics Fund 9.22 UTI Wealth Builder Fund: Series II 9.23 UTI Balanced Fund 9.24 UTI Bond Fund 9.25 UTI Dynamic Bond Fund 9.26 UTI Fixed Maturity Plan (UTI FMP) 9.27 UTI Floating Rate Fund 9.28 UTI GILT Advantage Fund 9.29 UTI G. Sec Fund 9.30 UTI Liquid Cash Plan 9.31 UTI: Mahila Unit Scheme (UTI MUS) 9.32 UTI: MIS Advantage Plan 9.33 UTI: Money Market Fund (UTI MMF) 9.34 UTI: Monthly Income Scheme (UTI MIS) 9.35 UTI Short-term Income Fund (UTI STIF) 9.36 UTI Treasury Advantage Fund 9.37 UTI Unit Scheme for Charitable and Religious Trusts and Registered Societies 9.38 Equity Tax Savings Plan (UTI-ELSS) Glossary 189-194 Bibliography 195-198 Index 199-206