Mutual Fund in India

1. a) What is interchangeable fund? Mutual fund is a trust, that pools the nest egg of a number of investors. The money thus collected is thusly invested by the fund manager on behalf of the investors in contrastive types of securities. The incomes earned through these investments are shared by its unit holders in proportion to the number of unit owned by them. Mutual fund trusts and corporations are also known as flow-through entities. For tax purposes, a flow-through entity treats the taxable income earned inside the entity as if you held the investments directly, instead of through the fund. The income that is distributed, or flowed out to you, keeps its identity. For example, dividend income remains dividend income, and crownwork gains remain capital gains when they are flowed out (or distributed) to investors. 1. b) Give a brief History of Mutual Fund in India? The rootage international stock mutual fund was introduced in US in 1940. bowl 1960, the Indian Mutual fund exertion was non existence. In the course 1963 the Govt. of India took the initiative by passing UTI Act, beneath which the Unit Trust of India (UTI) was set up as a statutory body. The designated role of UTI was to act as a mutual fund.

UTIs first scheme, called US-64, which was an open ended scheme, was driveed in 1964. Till 1987 UTI was the only mutual fund in the market since no one else was legally conquered to set up mutual funds. In 1987, other public sphere of influence institutions like Banks, Financial Institutions, and indemnity companies started establishing mutual funds, following the governments decision to allow them to do so. State Bank of India became the first one to launch a mutual fund when it launched SBI mutual funds in November, 1987. It was followed by CanBank Mutual Fund, LIC Mutual Fund etc. In the year 1992, The Government of India allowed private sector players to set up a Mutual fund. Subsequently to this, a number of private sector Mutual Funds came... If you want to get a rich essay, order it on our website: Orderessay

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