Mutual Funds

Paper Code: 
FMG 317
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

Course Objectives:

  • To understand the concept of mutual funds, To know about the roles of different players and to understand the fundamentals of net asset value (NAV) computation and various investment plans.

Course Outcome (COs):

Course

Learning outcome

 (at course level)

Learning and teaching strategies

Assessment Strategies

Paper Code

Paper Title

FMG 317

Mutual Funds

CO112 Gain insights on various aspects of the functioning of the mutual fund industry in India.

 CO113 Understand various aspects of mutual fund as an investment.

CO114 Analyze different types of  mutual funds in India.

CO115 Assess the performance of mutual fund industry and to obtain knowledge on the risk involved in the mutual fund.

 

Approach in teaching:

Interactive Lectures, Discussion, Tutorials, Reading assignments, Team teaching

 

Learning activities for the students:

Self learning assignments, Effective questions, Seminar presentation, Giving tasks.

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

 

10.00
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

10.00
Unit II: 
Fund Structure and Constituents -

Legal structure of mutual funds in India, Role of Trustee, Sponsor and AMC, Other Service Providers and their functions.

7.00
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.

10.00
Unit IV: 
Offer Document-

Know the process of New Fund Offer (NFO), Know the Investment Objective Policy and Strategy, Know the 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-Know the various distribution channels for mutual funds, the pre-requisites for becoming a mutual fund distributor, the elements covered in an agreement between a distributor and a mutual fund, the sales practices and commission structure.

8.00
Unit V: 
Mutual Fund Products-

Product features of diversified equity schemes, fixed maturity plans and index schemes, Gold ETFs, Concept of entry and exit load; Expense ratio. Computation of NAV.
Debt Funds, Liquid Funds, Different types of plans; Systematic Investment Plan (SIP); Systematic Transfer Plan (STP) and Systematic Withdrawal Plan (SWP); Dividend payout. Concept of entry and exit load; Expense ratio; Portfolio turnover; AUM; Analysis of cash level in portfolio.
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.
• Pathak Bharti V., Indian Financial System, Pearson Education, New Delhi.
• Gorden,Natrajan,Financial markets and services,Himalya Publishing House.
• Mutual fund poroducts and services,IIBF module,Taxman Publications
• N. J .Yasaswy , Personal Investment & Taxation, Year book, Y 2011-12 , ICFAI
• NCFM and NISM Modules

References: 

Gorden,Natrajan,Financial markets and services,Himalya Publishing House
Mutual fund poroducts and services,IIBF module,Taxman Publications N. J .Yasaswy Personal Investment & Taxation, Year book, Y 2011-12 , ICFAI

Academic Year: 
2020-2021
  • Printer-friendly version
  • PDF version