Mutual funds marketing MUTUAL FUND A GLOBAL LY

Mutual funds marketing

MUTUAL FUND – A GLOBAL LY PROVEN INVESTMENT AVENUE • In India, the mutual fund industry started with the setting up of the erstwhile Unit Trust of India in 1963. • Public sector banks and financial institutions were allowed to establish mutual funds in 1987. • Since 1993, private sector and foreign institutions were permitted to set up mutual funds

WHAT IS A MUTUAL FUND? • A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. • Anybody with an investible surplus of as little as a few hundred rupees can invest in Mutual Funds. • These investors buy units of a particular Mutual Fund scheme that has a defined investment objective and strategy

• The money thus collected is then invested by the fund manager in different types of securities. • These could range from shares to debentures to money market instruments, depending upon the scheme’s stated objectives

TYPES OF MUTUAL FUND SCHEMES • Open - Ended Schemes : An open-end fund is one that is available for subscription all through the year. These do not have a fixed maturity. Investors can conveniently buy and sell units at Net Asset Value ("NAV") related prices. The key feature of open-end schemes is liquidity.

Close - Ended Schemes • These schemes have a pre-specified maturity period. One can invest directly in the scheme at the time of the initial issue. Depending on the structure of the scheme there are two exit options available to an investor after the initial offer period closes. Investors can transact (buy or sell) the units of the scheme on the stock exchanges where they are listed

Interval Schemes: • Interval Schemes are that scheme, which combines the features of open-ended and close-ended schemes. The units may be traded on the stock exchange or may be open for sale or redemption during pre-determined intervals at NAV related prices

How to market mutual funds? • Positioning • Targeting