Mutual Funds

Paper Code: 
CBFS 201
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

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.

12.00
Unit I: 
Concept and Role of a Mutual Fund

Concept of a mutual fund, Classification of Mutual Funds, Organization of Mutual Funds, Advantages and limitations of mutual fund

12.00
Unit II: 
Fund Structure and Constituents

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

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 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.

12.00
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
 

Academic Year: 
2022-2023
  • Printer-friendly version
  • PDF version