Mutual Funds A link between the investor and the securities market by mobilizing savings from the investors and investing them in the securities market to generate returns A link between the investor and the securities market by mobilizing savings from the investors and investing them in the securities market to generate returns The investors should compare the risks and expected yields after adjustment of tax on various instruments while taking investment decisions. The investors should compare the risks and expected yields after adjustment of tax on various instruments while taking investment decisions.

WORKING OF MUTUAL FUNDS

ORGANISATION OF A MUTUAL FUNDORGANISATION OF A MUTUAL FUNDORGANISATION OF A MUTUAL FUNDORGANISATION OF A MUTUAL FUND There are many entities involved and the diagram below illustrates the organisational set up of a mutual fund:There are many entities involved and the diagram below illustrates the organisational set up of a mutual fund:There are many entities involved and the diagram below illustrates the organisational set up of a mutual fund:There are many entities involved and the diagram below illustrates the organisational set up of a mutual fund: ORGANISATION OF A MUTUAL FUNDORGANISATION OF A MUTUAL FUNDORGANISATION OF A MUTUAL FUNDORGANISATION OF A MUTUAL FUND There are many entities involved and the diagram below illustrates the organisational set up of a mutual fund:There are many entities involved and the diagram below illustrates the organisational set up of a mutual fund:There are many entities involved and the diagram below illustrates the organisational set up of a mutual fund:There are many entities involved and the diagram below illustrates the organisational set up of a mutual fund: ORGANISATION OF A MUTUAL FUNDORGANISATION OF A MUTUAL FUNDORGANISATION OF A MUTUAL FUNDORGANISATION OF A MUTUAL FUND There are many entities involved and the diagram below illustrates the organisational set up of a mutual fund:There are many entities involved and the diagram below illustrates the organisational set up of a mutual fund:There are many entities involved and the diagram below illustrates the organisational set up of a mutual fund:There are many entities involved and the diagram below illustrates the organisational set up of a mutual fund: ORGANISATION OF A MUTUAL FUNDORGANISATION OF A MUTUAL FUNDORGANISATION OF A MUTUAL FUNDORGANISATION OF A MUTUAL FUND There are many entities involved and the diagram below illustrates the organisational set up of a mutual fund:There are many entities involved and the diagram below illustrates the organisational set up of a mutual fund:There are many entities involved and the diagram below illustrates the organisational set up of a mutual fund:There are many entities involved and the diagram below illustrates the organisational set up of a mutual fund: ORGANISATION OF A MUTUAL FUNDORGANISATION OF A MUTUAL FUNDORGANISATION OF A MUTUAL FUNDORGANISATION OF A MUTUAL FUND There are many entities involved and the diagram below illustrates the organisational set up of a mutual fund:There are many entities involved and the diagram below illustrates the organisational set up of a mutual fund:There are many entities involved and the diagram below illustrates the organisational set up of a mutual fund:There are many entities involved and the diagram below illustrates the organisational set up of a mutual fund:

Terminologies Sponsor : It’s like the promoter of the company as it get the funds registered with SEBI. Sponsor : It’s like the promoter of the company as it get the funds registered with SEBI. Unit Value: The unit value of the fund is struck by adding up the values of all the investments at their market prices, subtracting amounts owed by the fund and dividing by the number of units held. Unit Value: The unit value of the fund is struck by adding up the values of all the investments at their market prices, subtracting amounts owed by the fund and dividing by the number of units held. Trustee: Holds the property for the benefit of the unit holders. Trustee: Holds the property for the benefit of the unit holders. Custodian: who is registered with SEBI, holds the securities of various schemes of the fund in its custody Custodian: who is registered with SEBI, holds the securities of various schemes of the fund in its custody AMC’s : Manages the funds by making investments in various types of securities. AMC’s : Manages the funds by making investments in various types of securities.

Reliance Mutual Fund Sponsor : Reliance Capital Limited Sponsor : Reliance Capital Limited Trustee: Reliance Capital Trustee Co. Ltd. Trustee: Reliance Capital Trustee Co. Ltd. Investment Manager: Reliance Capital Asset Management Ltd. Investment Manager: Reliance Capital Asset Management Ltd.

Frequently used terminologies Sale Price: It’s the price you pay when you invest in a scheme. Also called Offer Price. Sale Price: It’s the price you pay when you invest in a scheme. Also called Offer Price. Repurchase Price: It’s the price at which a close-ended scheme repurchases its units and it may include a back-end load. This is also called Bid Price. Repurchase Price: It’s the price at which a close-ended scheme repurchases its units and it may include a back-end load. This is also called Bid Price. Redemption Price: It’s the price at which open-ended schemes repurchase their units and close-ended schemes redeem their units on maturity. Such prices are NAV related. Redemption Price: It’s the price at which open-ended schemes repurchase their units and close-ended schemes redeem their units on maturity. Such prices are NAV related. Sales Load :It’s a charge collected by a scheme when it sells the units. Also called, ‘Front-end’ load. Schemes that do not charge a load are called ‘No Load’ schemes. Sales Load :It’s a charge collected by a scheme when it sells the units. Also called, ‘Front-end’ load. Schemes that do not charge a load are called ‘No Load’ schemes. Repurchase or ‘Back-end’ Load : It’s a charge collected by a scheme when it buys back the units from the unit holders. Repurchase or ‘Back-end’ Load : It’s a charge collected by a scheme when it buys back the units from the unit holders.

Basic Questions in Mind! How to invest in a scheme of a mutual fund? How to invest in a scheme of a mutual fund? How much should one invest in debt or equity oriented schemes? How much should one invest in debt or equity oriented schemes? How to know the performance of a mutual fund scheme? How to know the performance of a mutual fund scheme? How to know where the mutual fund scheme has invested money mobilized from the investors? How to know where the mutual fund scheme has invested money mobilized from the investors?