MUTUAL FUNDS

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

Learning outcome (at course level)

Learning and teaching strategies

Assessment Strategies

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

 

CO114 Student will examine the concepts and the functioning of the mutual fund industry in India.

CO115 Evaluate the legal structure of mutual fund.

CO116 Analyze the legal and regulatory environment for mutual funds and appraise the Investor rights and obligations.

CO117 Assess the performance of mutual fund industry and to obtain knowledge on the risk involved in the mutual fund.

CO118 Analyze the liquidity or cash level of portfolios of investors based on the concepts of NAV, exit, entry load, etc.

Class lectures

Seminars

Tutorials

Group discussions and Workshops

Question preparation

 

 

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: 

• 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

References: 

• 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.
• N. J .Yasaswy , Personal Investment & Taxation, Year book, Y 2011-12 , ICFAI
• NCFM and NISM Modules

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:
• Journal of Market Finance, http:// sagepub.com International journal of Business Economics and Management Research volume

Academic Year: 
2022-2023
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