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Project Report On INDIAN MF INDUSTRY Vs U.S.A . MF INDUSTRY

PREPARED BY: PANDIT ARPIT P.A.F.M (24). GUIDED BY: Mr. ASHISH SHAH FINANCE. Project Report On INDIAN MF INDUSTRY Vs U.S.A . MF INDUSTRY. History of Mutual Funds in INDIA. Formation of UTI in 1963 by joint initiave of the GOVT. Of INDIA and RBI.

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Project Report On INDIAN MF INDUSTRY Vs U.S.A . MF INDUSTRY

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  1. PREPARED BY: • PANDIT ARPIT • P.A.F.M (24) • GUIDED BY: • Mr. ASHISH SHAH • FINANCE Project Report On INDIAN MF INDUSTRY Vs U.S.A . MF INDUSTRY

  2. History of Mutual Funds in INDIA Formation of UTI in 1963 by joint initiave of the GOVT. Of INDIA and RBI. Non-UTI mutual funds entered the scenario since 1987 consisted of LIC,GIC and public sector banks backed mutual funds. 1993 saw the entry of private sector players on the Indian mutual fund scene. MF regulation were revised in 1996 to accomodate changing market needs. In India , SEBI is the regulatory authority that formulates policies and regulates the mutual funds to protect the intrest of the indian investor. Even mutual funds promoted by foreign entities come under the purview of SEBI when operating in India.

  3. Milestones in Indian MF industry 1st phase (1964 – 1987) UTI established on 1963 by an act of parliament. Set up by RBI and functioned under control of RBI. In 1978, IDBI took over control of UTI in place of RBI. 2nd phase (1987 -1993) Entry of Public Sector Funds 1987 marked the entry of non – UTI public sector MFs set up by public sector banks, LIC and GIC. SBI MF was 1st non- UTI MF established in june 1987 followed by canbank MF (Dec 87) , PNB MF (Aug 89) ,BOB MF (Oct 92). LIC established its MF in June 1989 while GIC set up its MF in Dec 1990.

  4. Third phase (1993 – 2003) 1993 was the year in which the first MF regulation came into being. The erstwhile Kothari pioneer (now merged with Franklin Templeton ) was the first private sector MF registered in 1993. In 1993 SEBI (MF) regulation were revised and since than the industry functions under the SEBI (MF) regulations 1996. Fourth phase (Since Feb 2003) In Feb 2003, the following the repeal of the UTI Act 1963, UTI was bifurcated into two separate entities. One is the specified undertaking of the UTI with assets of US 64 and certain other schemes which functions under the rules framed by Govt. Of India. Second is the UTI MF Ltd. , sponsored by SBI , PNB ,BOB and LIC which is registered with SEBI and functions under Mutual Fund regulations.

  5. List of AMC in India

  6. Growth in Assets Under Management

  7. The rating is based on the corpus of the scheme and relative performance of the scheme within its peer group.

  8. History of Mutual Funds in U.S.A The First group in the United States to invest in the Mutual Funds were the Students and faculty at Harvard Uni. In 1893. The Fund, which had started with 200 investors and $50000 grew in value to nearly $400000 in only one year. The Rules of investing in mutual funds changed after the great stock market crash of 1929. The securities and exchange commission was born and two key pieces of legislation, the securities act of 1933 and the securities exchange act of 1934 were passed by congress. Today , there are approximately 10000 different Mutual Funds representing 83 million investors and more than 600 asset management companies.

  9. Growth Story of Mutual Funds Industry in U.S.A At the beginning of the 1950s, the number of open-ended funds topped 100. In 1954, the financial markets overcame their 1929 peak, and the Mutual Fund industry began to grow its earnest , adding some 50 new funds over the course of the decade. The 1960s saw the rise of aggressive growth funds, with more than 100 new funds established and billions of dollars in new assets inflows. The 1970s also saw the rise of the no-load fund. This new way of doing business had an enormous impact on the way mutual Funds were sold. During the bullish 1990s, total assets in United States Mutual Funds rose from $ 1 trillion to $ 7 trillion. Despite the bear market, between April 2000 and Sep 2002, nearly $ 200 billion of new money was invested in U.S.equity Mutual Funds.

  10. Chart Showing Dominance of U.S.A in World Mutual Fund Industry Total Worldwide Mutual Fund Assets : $ 26.2 Trillions Total U.S.A Mutual Fund Assets : $ 12 Trillions

  11. Chart Showing Proportion of Different Funds in U.S Mutual Fund Assets

  12. List Of AMC in U.S.A

  13. Data Analysis India is at the first stage of a revolution that has already packed in the U.S.A. The U.S.A boasts of an Assets base that that is much higher than its bank deposits. In India ,Mutual Fund Assets are not even 10 % of the trend, but this trend is beginning to change. The basic fact behind Indian Financial System lies that banks can not be ignored and they will not close down completely. Their role as intermediaries can not be ignored. It is just that Mutual Funds are going to change the way banks do business in the future.

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