Fundamentals of Mutual Funds

Paper Code: 
25BIE232
Credits: 
04
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

This course will enable students to understand mutual funds' structure, regulations, investment strategies, and product offerings for informed financial decisions.

Course Outcomes: 

 

Course outcome (at course level)

Learning and teaching strategies

Assessment Strategies

Course title

 

 

On completion of this course, the students will be able to

  1. Analyze the concept, classification, structure, and advantages of mutual funds to assess their role in financial markets..
  2. Evaluate the legal framework, roles of key stakeholders, and operational functions of mutual funds in India.
  3. Examine the regulatory framework, AMFI guidelines, and investor rights to ensure compliance and ethical practices in mutual funds.
  4. Assess the components of offer documents, distribution channels, and sales practices to understand the mutual fund investment process.
  5. Analyze different mutual fund products, investment plans, risk factors, and SEBI regulations to make informed investment decisions.
  6. Contribute effectively in course-specific interaction

Approach in

Continuous assessment test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group projects.

 

 

teaching: Interactive

 

 

Lectures, Discussion,

 

 

Tutorials, Reading

 

 

assignments, White

 

 

board teaching

 

Fundamentals of Mutual Funds

(Theory)

 

 

Learning activities for the students: Role-Playing Exercises, Simulation, Case Analysis, Insurance Policy Analysis, Product Comparison, Expert talks , s Projects

 

 

12.00
Unit I: 
Concept and Role of a Mutual Fund-

• Concept of a mutual fund,
• Classification of Mutual Funds,
• Organisation of Mutual Funds,
• Advantages and limitations of mutual fund
• Concept of entry and exit load; Expense ratio.Portfolio turnover; AUM;
• Computation of NAV.

12.00
Unit II: 
Fund Structure and Constituents –

• Legal structure of mutual funds in India,
• Role of Trustee,
• Sponsor and Asset Management Company(AMC), Other Service Providers and their functions.

12.00
Unit III: 
Legal and Regulatory Environment –

• Role of the regulators in Mutual Fund Industry
Know the salient features of the AMFI Code of Ethics and AMFI Guidelines & Norms for Intermediaries (AGNI) ,
• Know the Investor rights and obligations.

12.00
Unit IV: 
Offer Document-

• Know the process New Fund Offer (NFO), Investment Objective Policy and Strategy, Regulatory aspects of an offer document ,
• Know the salient features of: Scheme Information Document (SID),Statement of Additional Information (SAI) and Key Information Memorandum (KIM).
Fund Distribution and Sales Practices-
• Distribution channels for mutual funds, pre-requisites for becoming a mutual fund distributor, agreement between a distributor and a mutual fund, sales practices and commission structure.

12.00
Unit V: 
Mutual Fund Products-

• Product features of diversified equity schemes,
• fixed maturity plans and index schemes, Gold ETFs,
• Debt Funds, Liquid Funds, Different types of plans; Systematic Investment Plan (SIP); Systematic Transfer Plan (STP) and Systematic Withdrawal Plan (SWP); Dividend payout.
• Features of SEBI regulations on Risk disclosures and Return presentations

Essential Readings: 

• Sadhak.H. Mutual Fund in India: Marketing Strategies and Investment Practices, Response Publication, New Delhi.
• National Stock Exchange of India Ltd, Mutual Fund Basic and Advisors Module.
• ICFAI
• NCFM and NISM Modules
• Pathak Bharti V., Indian Financial System, Pearson Education, New Delhi.

References: 

Suggested Readings:
• Sadhak.H., Mutual Fund in India: Marketing Strategies and Investment Practices, Response Publication, New Delhi.
• N. J .Yasaswy , Personal Investment & Taxation, Year book, 2011-12 ,
E-Resources:
• Investments (SIE), https://www.expresslibrary.mheducation.com/bookshelf
Workbook for NISM, Mutual fund products and services, Indian institute of banking and finance
Journals:
• Economic and Political Weekly, www.epw.in
• Indian Journal of Finance
• The Economic Challenger

Academic Year: 
2025-2026
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