Page 148 - DMGT512_FINANCIAL_INSTITUTIONS_AND_SERVICES

Unit 9: Mutual Funds

7. SEBI may during the pendency of any proceeding of suspension or cancellation also order Notes
suspension for launching of any scheme not exceeding .................. months.
8. Mutual Funds are subject to ...................

9. An SIP is an investment strategy offered by mutual fund houses, where one invests fixed
amounts at regular ........................ in a mutual fund scheme.
10. The higher the ....................., the lower the number of units.

11. AMFI is an abbreviation for ...................
12. On July 1, 2009, the Securities and Exchange Board of India has put a cap of one per cent on
the maximum amount an asset management company can retain from the exit load or the
.................. on mutual funds for marketing and selling expenses.
13. SEBI has directed fund houses to bring parity in exit loads for all classes of investors,
irrespective of the plans and the amount of investment and asked mutual funds to reduce
the ......................
14. In India, given that mutual funds are relatively new, there is a ..................... level of awareness
amongst investors about the working and benefits of Mutual Funds.
15. ..................... can purchase and sell mutual fund units through various types of
intermediaries.

9.10 Review Questions

1. Critically evaluate the performance of UTI in the last decade.
2. What have been the major points of concern for Indian mutual funds market in past 5
years?
3. Where do you see Indian Mutual Fund market heading towards in next 5 years and why?
4. What has been the biggest limitation of the government supported mutual funds in India?
5. What do you think is better in performance and why – public mutual funds/private
mutual funds?
6. How do analyse Indian Mutual fund market as compared to that of developed economies?
7. What are the five main reasons for mutual funds to have got so popular in recent times?

8. What are the challenges ahead of the regulatory authorities in India in order to manage/
regulate AMCs?
9. Analyse the recent regulations of SEBI with respect to mutual funds. Has the industry
taken them with open arms? Why/ Why not?
10. It is mandatory to disclose that the "mutual funds are subject to market risks". What are
these risks?

Answers: Self Assessment

1. strategy 2. minimize
3. SEBI 4. 1963
5. Value stocks 6. securities, investment management

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