Introduction

A mutual fund is a collective investment vehicle that collects & pools money from a number of
investors and invests the same in equities, bonds, government securities, money market
instruments.

The money collected in mutual fund scheme is invested by professional fund managers in stocks
and bonds etc. in line with a scheme’s investment objective. The income / gains generated from
this collective investment scheme are distributed proportionately amongst the investors, after
deducting applicable expenses and levies, by calculating a scheme’s “Net Asset Value” or NAV.
In return, mutual fund charges a small fee.

In short, mutual fund is a collective pool of money contributed by several investors and managed
by a professional Fund Manager.

Mutual Funds in India are established in the form of a Trust under Indian Trust Act, 1882, in
accordance with SEBI (Mutual Funds) Regulations, 1996.

The fees and expenses charged by the mutual funds to manage a scheme are regulated and are
subject to the limits specified by SEBI.

India has one of the highest savings rates globally. This penchant for wealth creation makes it
necessary for Indian investors to look beyond the traditionally favored bank FDs and gold
towards mutual funds.

However, lack of awareness has made mutual funds a less preferred investment avenue.

Mutual funds offer multiple product choices for investment across the financial spectrum. As
investment goals vary – post-retirement expenses, money for children’s education or marriage,
house purchase, etc. – the products required to achieve these goals vary too.

The Indian mutual fund industry offers a plethora of schemes and caters to all types of investor
needs.
History

A mutual fund is a professionally managed investment fund that pools money from many investors
to purchase securities. The term is typically used in the United States, Canada, and India, while
similar structures across the globe include the SICAV in Europe ('investment company with variable
capital') and open-ended investment company (OEIC) in the UK.
Mutual funds are often classified by their principal investments: money market funds, bond or fixed
income funds, stock or equity funds, or hybrid funds.[1] Funds may also be categorized as index
funds, which are passively managed funds that track the performance of an index, such as a stock
market index or bond market index, or actively managed funds, which seek to outperform stock
market indices but generally charge higher fees. Primary structures of mutual funds are open-end
funds, closed-end funds, unit investment trusts.
Open-end funds are purchased from or sold to the issuer at the net asset value of each share as of
the close of the trading day in which the order was placed, as long as the order was placed within a
specified period before the close of trading. They can be traded directly with the issuer or via
an electronic trading platform or stockbroker.[2]
Mutual funds have advantages and disadvantages compared to direct investing in individual
securities. The advantages of mutual funds include economies of scale, diversification, liquidity, and
professional management.[3] However, these come with mutual fund fees and expenses.
Mutual funds are regulated by governmental bodies and are required to publish information including
performance, comparison of performance to benchmarks, fees charged, and securities held. A single
mutual fund may have several share classes by which larger investors pay lower fees.
Hedge funds and exchange-traded funds are not mutual funds.

Early history[edit]
Further information: Financial history of the Dutch Republic

The first modern investment funds, the precursor of mutual funds, were established in the Dutch
Republic. In response to the Crisis of 1772, Amsterdam-based businessman Abraham (or Adriaan)
van Ketwich formed a trust named Eendragt Maakt Magt ("unity creates strength"). His aim was to
provide small investors with an opportunity to diversify.[6][7]
Mutual funds were introduced to the United States in the 1890s. Early U.S. funds were generally
closed-end funds with a fixed number of shares that often traded at prices above the portfolio net
asset value. The first open-end mutual fund with redeemable shares was established on March 21,
1924, as the Massachusetts Investors Trust, which still in existence today and managed by MFS
Investment Management.
In the United States, closed-end funds remained more popular than open-end funds throughout the
1920s. In 1929, open-end funds accounted for only 5% of the industry's $27 billion in total assets.
After the Wall Street Crash of 1929, the United States Congress passed a series of acts regulating
the securities markets in general and mutual funds in particular.

 The Securities Act of 1933 requires that all investments sold to the public, including
mutual funds, be registered with the SEC and that they provide prospective investors
with a prospectus that discloses essential facts about the investment.
 The Securities and Exchange Act of 1934 requires that issuers of securities, including
mutual funds, report regularly to their investors. This act also created the Securities and
Exchange Commission, which is the principal regulator of mutual funds.
  The Revenue Act of 1936 established guidelines for the taxation of mutual funds. It
allowed mutual funds to be treated as a flow-through or pass-through entity, where
income is passed through to investors who are responsible for the tax on that income.
 The Investment Company Act of 1940 established rules specifically governing mutual
funds.
These new regulations encouraged the development of open-end mutual funds (as opposed to
closed-end funds).[8]
Growth in the U.S. mutual fund industry remained limited until the 1950s when confidence in the
stock market returned. In the 1960s, Fidelity Investments began marketing mutual funds to the
public, rather than only wealthier individuals or those working in the finance industry.[9] The
introduction of money market funds in the high-interest rate environment of the late 1970s boosted
industry growth dramatically. The first retail index fund, First Index Investment Trust, was formed in
1976 by The Vanguard Group, headed by John Bogle; it is now called the "Vanguard 500 Index
Fund" and is one of the largest mutual funds.
Beginning the 1980s, the mutual fund industry began a period of growth.[4] According to Robert
Pozen and Theresa Hamacher, growth was the result of three factors:

1. A bull market for both stocks and bonds,

2. New product introductions (including funds based on municipal bonds, various
industry sectors, international funds, and target date funds) and
3. Wider distribution of fund shares. Among the new distribution channels were
retirement plans. Mutual funds are now the a preferred investment option in certain
types of retirement plans, specifically in 401(k), other defined contribution plans and
in individual retirement accounts (IRAs), all of which surged in popularity in the
1980s.[10]
The 2003 mutual fund scandal involved unequal treatment of fund shareholders whereby some fund
management companies allowed favored investors to engage in prohibited late trading or market
timing. The scandal was uncovered by former New York Attorney General Eliot Spitzer and led to an
increase in regulation.
In a 2007 study about German mutual funds, Johannes Gomolka and Ralf Jasny found statistical
evidence of illegal time zone arbitrage in trading of German mutual funds.[11] Though reported to
regulators, BaFin never commented on these results.

History
Axis Mutual Fund started its operations in 2009 with its first equity scheme, Axis Equity Fund.[5]
In April 2012, Schroders, an asset management company, acquired a 25% stake in Axis Mutual
Fund.[6][7]
In September 2019, Axis Mutual Fund launched an index fund based on Nifty 100 that is known as
Axis Nifty 100 Index fund.[8] On 22 January, 2020, the company launched ESG fund.[9]

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Axis Mutual Fund

 Type Private company

Industry Mutual Fund

Founded 2009

Headquarters Mumbai, India

Area served India

Key people Chandresh Kumar Nigam (MD & CEO)[1]

Jignesh Gopani (Head of Equity)

Products Mutual Fund

Website www.axismf.com

Axis Mutual Fund is an asset management company in India. It was established in the year 2009
and has its headquarter in Mumbai.[2][3]
Axis Mutual Fund offers various types of mutual fund schemes to invest in India, such as equity
funds, hybrid funds, debt funds, and more.[4]

History[
Origin
The AMC is a joint venture between ICICI Bank in India and Prudential Plc, one of UK’s largest
players in the financial services sectors.[5]
With its Corporate Office based in Bandra Kurla Complex, Mumbai, India the AMC has witnessed
substantial growth in scale; from 2 locations and 6 employees at the inception of the joint venture in
1998, to a current strength of more than 1000 employees with around 120 locations with an investor
base of more than 1.9 million investors.
 Type Public

Industry Mutual Funds

Founded 1993

Headquarters Mumbai, India

Area served India

Key people  Mr. Nimesh Shah[1]

(MD & CEO)
 Mr. S. Naren[2]
(Chief Investment Officer)
 Mr. Rahul Goswami
(Chief Investment Officer – Fixed

Income)

Products Mutual Fund, Portfolio Management

Services, Advisory Services, Real Estate
Investments
 ₹305,739 crore (US$41 billion)
AUM
(31 March 2018)

Number of 2000–2500
employees

Website www.icicipruamc.com

ICICI Prudential Mutual Fund is the second largest asset management company in India.[3][4] ICICI
Prudential Mutual Fund was established in 1993. [5]

HDFC
We are one of India’s largest mutual fund managers with ₹4.4 trillion in assets under
management. Started in 1999, we were set up as a joint venture between Housing
Development Finance Corporation Limited (“HDFC”) and abrdn Investment
Management Limited (erstwhile known as Standard Life Investments Limited). During
FY18-19 we carried out an initial public offering, and became a publicly listed company
in August 2018. Our principal shareholders are HDFC and abrdn Investment
Management Limited which own 52.6% and 16.2% stake, respectively. HDFC Asset
Management Company (“HDFC AMC”) is the investment manager to the schemes of
HDFC Mutual Fund (“HDFC MF”).
We offer a comprehensive suite of savings and investment products across asset
classes, which provide income and wealth creation opportunities to our large retail and
institutional customer base of 9.2 million live accounts. We have a dominant position in
equity investments, with one of the highest market shares in actively managed equity-
oriented funds. Our strengths lie in delivering simple and accessible investment
products for the average Indian household. We are the most preferred choice for retail
investors, with the highest market share in assets from individual investors. Our offering
of systematic transactions further enhances our appeal to individual customers looking
to invest periodically in a disciplined and risk-mitigating manner. Our schemes have
weathered multiple market cycles and carry track records of up to 26 years. We work
with diverse sets of distribution partners which helps us expand our reach. We currently
have over 70 thousand empanelled distributors which include mutual fund distributors,
national distributors and banks.
We serve our customers and distribution partners in over 200 cities through our network
of 227 branches and 1,203 employees. Our highly stable Management has steered the
company since its inception through the ever-evolving industry. Our consistent position
as one of India’s leading asset management companies is driven by our comprehensive
investment philosophy, process and risk management. Our 30-member investment
team is highly experienced and competent with a track record of performance, stability
and a deep understanding of businesses. We also provide portfolio management and
segregated account services, including discretionary, non-discretionary and advisory
services, to high net worth individuals (“HNIs”), family offices, domestic corporates,
trusts, provident funds and domestic and global institutions.
About HDFC Group: Our company is part of HDFC Group, a recognized financial
conglomerate, with presence in housing finance, banking, life and non-life insurance,
asset management, real estate funds and education finance. HDFC Ltd is one of India’s
leading housing finance companies and our majority shareholder.
All data is as on 30-Sep-2021 unless otherwise stated.
History[edit]
Kotak Mahindra Asset Management Company Limited (KMAMC), a wholly owned subsidiary
of Kotak Mahindra bank Limited (KMBL), is the Asset Manager for Kotak Mahindra Mutual Fund
(KMMF). KMAMC started operations in December 1998 and has approximately 74 Lac investors in
various schemes.
Kotak Mutual Fund is a wholly owned subsidiary of Kotak Mahindra Bank Limited, and was
established in December 1998. And is currently the 5th largest mutual fund house in the country
with more than 2.37 lakh crore Assets Under Management. It currently operates out of 86
branches in India with headquarter based in Mumbai, and has around 75 lakhs investor
accounts, with a strong distribution network across the country with more than 50000 empanelled
distributors.
It provide wide range of product which can cater to all types of investor with varied risk profiles. And
is currently managing more than 73000 of Equity Assets.
Kotak FlexiCap Fund – Which was earlier known as Kotak Standard Multicap Fund is currently the
largest equity fund of India, with more than 35000 Cr of Assets Under Management.
In December 2020 it became the first Indian Mutual House to launch Global REIT Fund of Fund .

Industry Mutual Fund

Founded 1985

Headquarters Mumbai, Maharashtra, India

Area served India

Key people Mr. Nilesh Shah (Managing Director)[1],

Mr. Harsha Upadhyaya (CIO Equity),[2]
Ms. Laxmi Iyer (CIO Debt & Head
Products),[3]
Mr. Anshul Saigal (Head PMS)[4]
Mr. Manish Mehta – Joint President.
Mr. Kinjal Shah – Head Digital Business
and Marketing.

Products Mutual Fund

 Kotak Standard Multicap Fund
Kotak Emerging Equity Fund
Kotak Balanced Advantage Fund
Kotak Tax Saver Fund
Kotak EQ Contra Fund

AUM 2.37 lac crore as on 31st Jan 2021

Number of 500+
employees

Website https://www.kotakmf.com/

Literature Review
A mutual fund is an actively managed investment company that pools money from
individuals and institutions that share a common financial goal. Professional
money managers build a portfolio of securities that they believe will help investors
achieve their objectives. Portfolios typically consist of stocks, bonds and money
market instruments, or a combination of the three

A Mutual fund is a pool used to compile investor funds and then the funds are
invested in securities portfolio by the investment manager. Mutual funds are
investors’ funds gathered by a profesional investment company. The investment
company will do the investment based on what is the investors’ decision to invest
in terms of the forms of stocks, bonds or another instrument. A mutual fund is an
investment for an investor that do not have time to control their money in capital
market and then hand over their money to the investment manager.

Nowadays, people can start to open an account in mutual funds only with Rp.
100.000. 7 To open the account people can contact or go to securities that provide
a mutual fund service. Securities that have the mutual fund service are companies
that have been listed and have a license from JSX. There are other parties that
involve in these securities, which is a custodian bank. The custodian bank is a bank
that has an authority to save and protect funds used in the mutual fund transaction.
The investment manager do not have an authority to keep the funds so that there is
a custodian bank that involves in the business.