Labels: faqs, MF, mutual funds

Mutual funds have their drawbacks and may not be for everyone:

• No Guarantees: No investment is risk free. If the entire stock market declines in value, the value of mutual fund shares will go down as well, no matter how balanced the portfolio. Investors encounter fewer risks when they invest in mutual funds than when they buy and sell stocks on their own. However, anyone who invests through a mutual fund runs the risk of losing money.
  
  
• Fees and commissions: All funds charge administrative fees to cover their day-to-day expenses. Some funds also charge sales commissions or "loads" to compensate brokers, financial consultants, or financial planners. Even if you don't use a broker or other financial adviser, you will pay a sales commission if you buy shares in a Load Fund.
  
  
• Taxes: During a typical year, most actively managed mutual funds sell anywhere from 20 to 70 percent of the securities in their portfolios. If your fund makes a profit on its sales, you will pay taxes on the income you receive, even if you reinvest the money you made.
  
  
• Management risk: When you invest in a mutual fund, you depend on the fund's manager to make the right decisions regarding the fund's portfolio. If the manager does not perform as well as you had hoped, you might not make as much money on your investment as you expected. Of course, if you invest in Index Funds, you forego management risk, because these funds do not employ managers.

Labels: MF, mutual funds

The advantages of investing in a Mutual Fund are:

• Diversification: The best mutual funds design their portfolios so individual investments will react differently to the same economic conditions. For example, economic conditions like a rise in interest rates may cause certain securities in a diversified portfolio to decrease in value. Other securities in the portfolio will respond to the same economic conditions by increasing in value. When a portfolio is balanced in this way, the value of the overall portfolio should gradually increase over time, even if some securities lose value.
  
  
• Professional Management:Most mutual funds pay topflight professionals to manage their investments. These managers decide what securities the fund will buy and sell.
  
  
• Regulatory oversight: Mutual funds are subject to many government regulations that protect investors from fraud.
  
  
• Liquidity: It's easy to get your money out of a mutual fund. Write a check, make a call, and you've got the cash.
  
  
• Convenience: You can usually buy mutual fund shares by mail, phone, or over the Internet.
  
  
• Low cost: Mutual fund expenses are often no more than 1.5 percent of your investment. Expenses for Index Funds are less than that, because index funds are not actively managed. Instead, they automatically buy stock in companies that are listed on a specific index
  
  
• Transparency
  
  
• Flexibility
  
  
• Choice of schemes
  
  
• Tax benefits
  
  
• Well regulated

Labels: MF, Mutual Fund Companies, mutual funds

• This mutual fund association of India maintains a high professional and ethical standards in all areas of operation of the industry.
  
  
• It also recommends and promotes the top class business practices and code of conduct which is followed by members and related people engaged in the activities of mutual fund and asset management. The agencies who are by any means connected or involved in the field of capital markets and financial services also involved in this code of conduct of the association.
  
  
• AMFI interacts with SEBI and works according to SEBIs guidelines 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 Industry.
  
  
• It develops a team of well qualified and trained Agent distributors. It implements a programme of training and certification for all intermediaries and other engaged in the mutual fund industry.
  
  
• AMFI undertakes all India awarness programme for investors inorder to promote proper understanding of the concept and working of mutual funds.
  
  
• At last but not the least association of mutual fund of India also disseminate informations on Mutual Fund Industry and undertakes studies and research either directly or in association with other bodies.

• SBI Fund Management Ltd.
• BOB Asset Management Co. Ltd.
• Canbank Investment Management Services Ltd.
• UTI Asset Management Company Pvt. Ltd.

• GIC Asset Management Co. Ltd.
• Jeevan Bima Sahayog Asset Management Co. Ltd.

• BenchMark Asset Management Co. Pvt. Ltd.
• Cholamandalam Asset Management Co. Ltd.
• Credit Capital Asset Management Co. Ltd.
• Escorts Asset Management Ltd.
• JM Financial Mutual Fund
• Kotak Mahindra Asset Management Co. Ltd.
• Reliance Capital Asset Management Ltd.
• Sahara Asset Management Co. Pvt. Ltd
• Sundaram Asset Management Company Ltd.
• Tata Asset Management Private Ltd.

• Birla Sun Life Asset Management Co. Ltd.
• DSP Merrill Lynch Fund Managers Limited
• HDFC Asset Management Company Ltd.

• ABN AMRO Asset Management (I) Ltd.
• Alliance Capital Asset Management (India) Pvt. Ltd.
• Deutsche Asset Management (India) Pvt. Ltd.
• Fidelity Fund Management Private Limited
• Franklin Templeton Asset Mgmt. (India) Pvt. Ltd.
• HSBC Asset Management (India) Private Ltd.
• ING Investment Management (India) Pvt. Ltd.
• Morgan Stanley Investment Management Pvt. Ltd.
• Principal Asset Management Co. Pvt. Ltd.
• Prudential ICICI Asset Management Co. Ltd.
• Standard Chartered Asset Mgmt Co. Pvt. Ltd.

Labels: MF, Mutual Fund Companies, mutual funds

Labels: MF, mutual funds

Wide variety of Mutual Fund Schemes exist to cater to the needs such as financial position, risk tolerance and return expectations etc. The table below gives an overview into the existing types of schemes in the Industry.

• By Structure
  • Open - Ended Schemes
  • Close - Ended Schemes
  • Interval Schemes
    
    
• By Investment Objective
  • Growth Schemes
  • Income Schemes
  • Balanced Schemes
  • Money Market Schemes
    
    
• Other Schemes
  • Tax Saving Schemes
  • Special Schemes
    • Index Schemes
    • Sector Specfic Schemes

Labels: MF, mutual funds

• 100% growth in the last 6 years.
  
  
• Number of foreign AMC's are in the que to enter the Indian markets like Fidelity Investments, US based, with over US$1trillion assets under management worldwide.
  
  
• Our saving rate is over 23%, highest in the world. Only channelizing these savings in mutual funds sector is required.
  
  
• We have approximately 29 mutual funds which is much less than US having more than 800. There is a big scope for expansion.
  
  
• 'B' and 'C' class cities are growing rapidly. Today most of the mutual funds are concentrating on the 'A' class cities. Soon they will find scope in the growing cities.
  
  
• Mutual fund can penetrate rurals like the Indian insurance industry with simple and limited products.
  
  
• SEBI allowing the MF's to launch commodity mutual funds.
  
  
• Emphasis on better corporate governance.
  
  
• Trying to curb the late trading practices.
  
  
• Introduction of Financial Planners who can provide need based advice.

Labels: MF, mutual funds