It gives us immense pleasure to present the First Edition of “Mutual Fund Distributor – I” designed exclusively for the students of S.Y.B.A.F., Semester III, University of Mumbai. This book has been developed in accordance with the New Syllabus and Paper Pattern introduced under the National Education Policy (NEP) 2020 and is applicable from the academic year 2025–26.
The text aims to offer a comprehensive understanding of the investment landscape and the dynamic structure and functioning of mutual funds in India. With a blend of theoretical clarity and practical insight, the book seeks to enhance the learner’s ability to analyse risk-return trade-offs, behavioral biases, asset allocation strategies and the regulatory and operational framework of mutual funds.
Structured into two modules, the book covers a wide spectrum of themes including financial goals, risk profiling, mutual fund classification, SEBI regulations, NAV computation, total expense ratio and legal architecture. Carefully integrated practical illustrations and conceptual applications have been included to make learning experiential and industry relevant.
Each sub-unit concludes with a Continuous Internal Evaluation (CIE) section comprising MCQs, True or False, Conceptual Application Exercises, Short Notes, Illustrative Sums and Innovative Activity to foster applied learning, critical thinking and collaborative engagement.
Contents –
Module – 1: Investment Landscape and Concept and Role of a Mutual Fund
Unit 1: Investment Landscape:
A. Investors and their Financial Goals.
B. Savings or Investments? Meaning and Importance.
C. Different Asset Classes: Real Estate; Commodities; Fixed Income; Equity; Hybrid Asset Classes: Characteristics and Present Indian and Global Scenarios.
D. Different Types of Risks: Investment Risks; Inflation Risk; Liquidity Risk; Credit Risk; Interest Rate Risk; Market Risk and Price Risk.
E. Risk Measures and Management Strategies.
F. Behavioural Biases in Investment Decision Making.
G. Risk Profiling of Individuals: Case Studies.
H. Understanding Asset Allocation: Case Studies.
Unit 2: Concept and Role of a Mutual Fund
I. Concept of Mutual Funds
A. Role of Mutual Funds
B. Investment Objectives of Mutual Funds
C. Investment Policy for Mutual Funds
D. Important Concepts inMutual Funds
E. Key Mutual Fund Documents: SID, SAI and KIM
F. Advantages of Mutual Funds for Investors
G. Limitations of Mutual Funds
II. Classification of Mutual Funds
A. By the Structure of the Fund
B. By the Management of the Portfolio
C. By the Investment Universe
D. SEBI Scheme Catergorization (Standardised Classification): (i) Equity Schemes, (ii) Debt Schemes, (iii) Hybrid Schemes, (iv) Solution-Oriented Schemes, (v) Other Schemes
III. Growth of the Mutual Fund industry in India
Module – 2: Legal Structure of Mutual Funds in India and Net Asset Value, Total Expense Ratio and Pricing of Units
Unit 3: Legal Structure of Mutual Funds in India
A. Structure of Mutual Funds in India
B. Key Constituents of a Mutual Fund: (1) Sponsors, (2) Board of Trustees, (3) Mutual Fund Trust, (4) Asset Management Company (AMC), (5) Custodian
C. Organization Structure of Asset Management Company
D. Role and Support function of Service Providers
E. Role and Function of Association of Mutual Funds in India (AMFI).
Unit 4: Net Asset Value, Total Expense Ratio and Pricing of Units
A. Fair Valuation Principles
B. Computation of Net Assets of Mutual Funds Scheme and NAV (Practical sums):
(1) Net Assets of Scheme
(2) Net Asset Value
(3) Mark to Market
(4) Total Expenses in Mutual Funds Scheme
C. Dividends and Distributable Reserve
D. Concept of Entry and Exit Load and its impact on NAV (Practical sums)
E. Key Accounting and Reporting Requirements
F. NAV, Total Expense Ratio and pricing of units for the Segregated Portfolio (Practical sums)
