Mutual fund industry in india is regulated by

The first introduction of a Mutual funds are an under-tapped market in India [ ] Despite being available in the market, The primary reason for not investing appears to be correlated with city size. Among respondents with a high [ citation needed] In 2019, Asset under management (AUM) of the mutual fund industry rose by 13% to 24 trillion in 2018 by November Distribution [ ] This section needs expansion. You can help by ( July 2020) Mutual funds in India are distributed mainly in 2 ways:- Online [ ] Customers can buy mutual funds online via the corresponding Offline [ ] Most of the Average assets under management [ ] Assets under management (AUM) is a financial term denoting the market value of all the funds being managed by a financial institution (a mutual fund, hedge fund, private equity firm, venture capital firm, or brokerage house) on behalf of its clients, investors, partners, depositors, etc. The average Mutual Fund Name Total Schemes QAAUM AUM (₹ Lakh.) Prev QAAUM (₹ Lakh.) Inc/Dec (₹ Lakh.) Percentage 263 3776454.37 3456348.88 320105 9% 111 965630.33 925542.12 40132 4% 806 13678510.7 13684493.34 5312 0% 114 509706.79 500795.21 9209 2% 76 238501.41 242767.91 2887 1% 142 804326.86 751779.86 52627 7% 8 27698 17194 10504 61% 491 2598683.24 216345 -80979 -37% 398 4015131.25 3918267.17 96865 2% 70 167774.29 163236.28 4538 3% 60 28559.18 29222.27 -663 -2% 200 6784076.49 7172216.54 -384257 -5% 18 610139.99 685179.35 -75039 -11% 1173 17608456.44 17866622.24 -256390 -1% 155...

Various investment mechanisms are available to investors, the mutual fund being one of them, is a mechanism for pooling the resources by issuing units to the investors and investing funds in securities, subjected to the objectives mentioned in the offer document. It offers ample opportunities to an investor. Like any other type of investment, they are also associated with certain risks like poor planning of returns, underperformance, excessive diversification, etc. Also, because of the wide variety of mutual funds, they allow investors to participate in a wide variety of investment types. According to Securities Exchange Board of India (Mutual Fund) Regulations, 1996, “Mutual Fund means a fund established in the form of a trust to raise money through the sale of units to the public or a section of the public under one or more schemes for investing in securities including money market instruments or gold or gold-related instruments or real estate assets”. Furthermore, mutual funds usually launch different schemes having different objectives from time to time. In India, it is regulated by the Securities Exchange Board of India (Mutual fund) Regulations, 1996. Table of Contents • • • • • • • History of Mutual Funds In India, the concept of mutual fund was introduced in 1963, when the Government of India and Reserve Bank of India (in brevity RBI) launched Unit Trust of India (in brevity UTI) under an Act of Parliament. UTI remained in monopoly for a long duration. In 1978, the...

A mutual fund is a pool of money managed by a professional Fund Manager. It is a trust that collects money from a number of investors who share a common investment objective and invests the same in equities, bonds, money market instruments and/or other securities. And the income / gains generated from this collective investment is distributed proportionately amongst the investors after deducting applicable expenses and levies, by calculating a scheme’s “Net Asset Value” or NAV. Simply put, the money pooled in by a large number of investors is what makes up a Mutual Fund. Here’s a simple way to understand the concept of a Mutual Fund Unit. Let’s say that there is a box of 12 chocolates costing ₹40. Four friends decide to buy the same, but they have only ₹10 each and the shopkeeper only sells by the box. So the friends then decide to pool in ₹10 each and buy the box of 12 chocolates. Now based on their contribution, they each receive 3 chocolates or 3 units, if equated with Mutual Funds. And how do you calculate the cost of one unit? Simply divide the total amount with the total number of chocolates: 40/12 = 3.33. So if you were to multiply the number of units (3) with the cost per unit (3.33), you get the initial investment of ₹10. This results in each friend being a unit holder in the box of chocolates that is collectively owned by all of them, with each person being a part owner of the box. Next, let us understand what is “Net Asset Value” or NAV. Just like an equity shar...

A mutual fund based in Europe falls under a different regulatory environment than a fund that is certified for investment accounts in Hong Kong. Each country has its own rules and "tastes" for how a mutual fund is constructed, and it's important to understand how these regulations shape the funds from each country. This article will give a quick tour of mutual funds and their regulators around the globe. Common Traits of All Mutual Funds Before we can delve into the differences, it is important to first describe some basic mutual fund truths. All mutual funds pool the many smaller deposits of individual investors so they can make large purchases in stocks or bonds. Most mutual funds are available to both the Another commonality among mutual funds throughout the world is that every major economy has specific rules pertaining to the registration, marketing, and sale of funds. The mutual fund industry is a highly regulated space, but those regulations differ by country or region. Regulations are in place to protect the consumer; this helps to ensure that The MPFSA's rules are more restrictive partly because the authority wants to make sure that the nest eggs of its residents are protected and not invested in funds of a speculative nature. The MPFSA takes compliance with its rules very seriously. Some of the more restrictive rules deal with unrated, or below- not listed on one of these approved exchanges.

Ritika produces ad films for a living. Driven and hard-working, she draws a good salary and diligently saves a part of it each month. However, the savings account she parks her money in pays very little interest. With the cost of living on the rise, Ritika worries that a savings bank account isn't enough. She’s right! Ritika already works hard for her money. What Ritika needs is for the money to work hard for her. One of the simplest ways to make that happen is by investing in mutual funds. Mutual Funds in India: The backstory India’s first mutual fund The story of the mutual fund in India begins with forming of the Unit Trust of India (UTI) in 1963. Brought into being by an Act of Parliament, UTI was set up and controlled by the Reserve Bank of India (RBI) until 1978. That year, the Industrial Development Bank of India (IDBI) replaced the RBI as the UTI regulator and administrative authority. The first mutual fund scheme launched by UTI was Unit Scheme 1964 (US 64). By the end of 1988, the total market value of the UTI investments amounted to Rs 6,700 crore. The emergence of non-UTI mutual funds In June 1987, the State Bank of India (SBI) launched the first non-UTI mutual fund. Between 1987 and 1992, five other public sector banks set up mutual funds of their own: • Canbank in December 1987 • Punjab National Bank in August 1989 • Indian Bank in November 1989 • Bank of India in June 1990 • Bank of Baroda in October 1992 The Life Insurance Corporation of India (LIC) launche...

A mutual fund is an investment vehicle that pools investors’ money and invests it in stock market-linked financial instruments such as stocks and bonds to generate returns. The combined holding of the fund is known as its portfolio. Imagine a non-stop bus called V1, which travels across India, going from one city to another, along a specific route. V1, just like every other bus, has a driver and many passengers. During the journey, some passengers board the bus if its route includes their desired destination and some passengers alight once their destination has been reached. If we relate this to a mutual fund, the bus will be a mutual fund scheme; the travel route is the fund objective; the bus driver is the fund manager and investors’ money would be passengers. V1 would travel through various places and on its journey, it would get stuck in traffic at times. There will be times when it traverses empty roads, enabling it to reach great speed. There is also the possibility that the tyres get punctured. Now, in spite of all this, V1 will not stop. It will continue to follow its path and make sure that it reaches various cities sooner or later. The experiences encountered by V1 are similar to volatility in the stock market. There will be times when the market goes down but it will eventually reach the highway. V1 is an example of just one fund. Like we have multiple buses travelling across the nation, there are many different mutual funds as well, whose aim and route coul...

Mutual funds are an important investment avenue for individuals and institutions alike. They offer diversification, professional management, and transparency to investors. However, like any financial product, mutual funds are subject to regulations to protect investors’ interests and maintain market integrity. In India, mutual funds are regulated by the Securities and Exchange Board of India (SEBI), the country’s primary regulator for securities markets. In this blog post, we will discuss the regulatory framework governing mutual funds in India and the role of SEBI in ensuring investor protection. Table of Contents • • • • Regulatory Framework for Mutual Funds in India The regulation of mutual funds in India is governed by the SEBI (Mutual Funds) Regulations, 1996. The regulations cover all aspects of mutual fund operations, including registration, disclosure, investment norms, and valuation. Additionally, SEBI has issued various circulars and guidelines to provide clarity on specific issues and ensure uniform practices across the industry. One of the key features of the regulatory framework is the requirement for mutual funds to be structured as trusts. This allows for a clear separation of ownership and management, with the trustees acting as the custodians of the fund’s assets and the asset management company (AMC) responsible for managing the investments. SEBI also mandates that mutual funds must have an independent custodian to hold the fund’s securities and ensure th...