Mutual Funds are Regulated by AMFI (Association of Mutual Fund of India) and it is incorporated on 22nd Aug 1995.AMFI acts as the central regulating body of the mutual fund industry.AMFI is established to protects the interests of mutual fund investors & also AMCs (Asset Management Companies). AMFI is a non-profit organization in the mutual fund sector under SEBI. Currently 43 Asset management Companies are registered with SEBI.
Thank you for reading this post, don't forget to subscribe!Goals & Objectives of AMFI
AMFI aims to set uniform, professional and ethical standards across all dimensions of mutual fund industry.AMFI works in co-ordination with SEBI, hence abiding the guidelines sets by SEBI.AMFI also aims to spread as much awareness regarding risks involved in mutual fund investments.
Committees under AMFI
The Committees makes suggestion on the various investments being done by AMFI. They help in cross checking the valuations of different AMCs.
Types of Mutual Funds
There are several types of mutual funds available for investments. All the mutual funds are fall in the following 4 categories.
1-Equity Funds: This fund invests principally in equity or stocks. Equity funds are named for the size of companies. They invest in small-cap, Mid-cap or Large-cap.The fund manager invest in various stocks & shares of various companies.
2-Debt Funds: This fund invests Primarily in fixed income securities such as bonds and treasury bills. The fund manager invest in various fixed income instruments such as Fixed Maturity Plans, Gilt Funds, Liquid Funds, Short Term Funds& Long-Term Funds and money Income Plans.
3-Money Market Funds: Like investors trade in stocks in the stock market.in the same way investors also invest in the money market known as capital market or cash market. Banks/Financial Institutions are issuing money market securities like bonds, Treasury bills, dated securities and certificate of deposits. The Fund Manager invest your money and disburse regular dividends.
4-Hybrid Funds: Hybrid Funds also known as balanced Funds. It is the optimum mix of bonds & stocks. The ratio of stocks & bonds can be either fixed or variable. The fund manager invests your money in both debt and equity in a fixed /variable proportion.
