2B CHAPTER 8

A mutual fund is a non collective investment vehicle

Each investor’s share in the pool of funds is not equal

A mutual fund investor is called a unit holder just as an investor in equity shares is called a shareholder.

According to the SEBI Regulations, each mutual fund scheme has to have a separate account.

Small amounts invested by investors get benefits of the large pool.

Portfolio diversification and the professional management of funds offer reduction in risk for the investor

The open ended structure is highly illliquid

The activities associated with portfolio management involve costs and fees

RBI has issued guidelines on the maximum limit of TER permissible to be charged by mutual fund schemes.

SEBI has classified cities as ‘Top 30’ (T-30) and ‘Beyond top 30’ (B-30) cities