[Securities and Exchange Board of India (Mutual Funds) Regulations, 1996]
Mutual Fund as name suggests its collection of fund for the collective goal to make mutual earning and distribution thereon. It is a professionally managed investment scheme. It is controlled by an Asset Management Company (AMC) that collects funds from group of Investors and invest such pooled funds either in Equity or Debt, as per the investment strategy of Mutual Fund.
Category of Investment:
Equity: Refers to ownership of underlying Company or Organization/Entity giving power to vote in the conduct of general meeting and in return provides the Interim or Final Dividend of Entity. It bears the share of loss as well as profit, as the case may be being Equity Owner of Company/Entity.
Debt: Refers to lender of particular organization or issuing agency of such debt paper, bond, debentures or else. It gives right of interest on such instrument instead of ownership and voting rights thereon. It has upfront fixed rate of income as interest.
Mutual Fund as per their investment strategy create fund where investor buys unit and become unit holder of that particular fund. Thereafter the risk and reward is as per nature of fund with its instruction or direction to use the collected fund in specified class of assets.
Illustrative List of Fund:
- Debt Fund (DF)
- Equity Fund (EF)
- Equity Linked Saving Scheme (ELSS)
- Gilt Funds
- Diversified Fund
- Index Fund
- Liquid Mutual Fund
- Debt-oriented hybrid Funds
- Arbitrage Funds
- Dynamic Bond Fund
There are 49 Mutual Funds registered with Board, out of which 1 Entity working is suspended by Board therefore effectively there are only 48 Mutual Funds in India. Namely Yes Mutual Fund, Tata Mutual Fund, UTI Mutual Fund, SREI Mutual Fund, SBI Mutual Fund, Mahindra Manulife Mutual Fund, LIC Mutual Fund, L & T Mutual Fund, HDFC Mutual Fund and so on.
As on Feb 2021 Deployment of Fund into Debt Segment by Mutual Fund.
Above explained fund for given time frame is distributed into following assets class, generally:
- Government Securities
- Money Market Instrument (Other Than Corporate Bonds)
- Commercial Paper – Bank, NBFC, Real Estate and Others
- Bank Certificate of Deposit
- Treasury Bills
- Collateralized Borrowing and Lending Obligation (CBLO)
- Other Money Market Instrument
- Corporate Debt (Including Floating Rate Bond, NCDs and Others)
- PSU Bonds/Debt
- Equity Linked Debentures/Notes
- Securitised Debt
- Asset Backed Securities
- Mortgage Backed Securities
- Single Sell Downs/Single Loan
- Bank FD
As on Feb, 2021 Deployment of Fund into Equity Segment by Mutual Fund.
As on Feb, 2021 Deployment of Fund into REIT/INVIT by Mutual Fund.