Table of Contents of the Book: 9386268191

Foreword to the Second Edition

Foreword to the First EditionĀ 

Preface to the Fift EditionĀ 


Chapter 1: Introduction

1.1 What is a Mutual Fund?
1.2 Who are the Parties Involved?
1.3 Capital Flow in the Economy
1.4 Corporate Governance
1.5 Schemes and Units
1.6 Net Asset Value (NAV)
1.7 Benefits of Investing in Mutual Funds
1.8 Limitations of Mutual Funds
1.9 Indian Mutual Fund Industry (Size)
Annexure 1.1: Assets under Management (1965-2015)
Annexure 1.2: Mutual Funds and Average AUM

Chapter 2: Mutual Fund Schemes and Comparable Products

2.1 Types of Schemes by Tenor
2.2 Types of Schemes by Asset Class
2.3 Types of Schemes by Position Philosophy
2.4 Types of Schemes by Solution Orientation
2.5 Types of Schemes by Geography
2.6 Fund of Funds (FoF) Schemes
2.7 Schemes versus Options or Plans
2.8 Comparison with Other Products
2.9 Indian Mutual Fund Industry (Schemes)
Annexure 2.1: Assets under Management (Categories & Type-wise)
Annexure 2.2: Distribution of Investor Accounts
Annexure 2.3: Age-wise Analysis of Investor Accounts

Chapter 3: Legal Structure of Mutual Funds in India

3.1 Sponsor
3.2 Trusteeship
3.3 Asset Management Company (AMC)
3.4 Maintenance of Investor Records
3.5 Unique Client Code
3.6 Custody of Investments
3.7 Setting up a Mutual Fund Operation
3.8 Change in Fundamental Attributes
3.9 Mergers and Acquisitions
3.10 Categorisation and Rationalisation of Mutual Fund Schemes

Chapter 4: Investments by Mutual Fund Schemes

4.1 Types of Equity
4.2 Risks in Equity Investing
4.3 Value Drivers in Equity Market
4.4 Valuation of Equity Securities in Mutual Fund Schemes
4.5 Equity Investment Restrictions for Mutual Funds
4.6 Management of Equity Portfolio
4.7 Types of Debt
4.8 Risks in Debt Investing
4.9 Yield to Maturity and Price
4.10 Valuation of Debt Securities in Mutual Fund Schemes
4.11 Debt Investment Restrictions for Mutual Funds
4.12 Management of Debt Portfolio
4.13 Types of Derivatives
4.14 Investment in Derivatives by Mutual Funds
4.15 Gold
4.16 Real Estate

Chapter 5: Expenses, Net Asset Value and Loads

5.1 Initial Issue Expense
5.2 Deferred Load
5.3 Net Asset Value
5.4 Recurring Expenses
5.5 Load and Its Implications
5.6 Profitability Metric

Chapter 6: Liability of Schemes

6.1 Unit Capital Accounting
6.2 Management of Liquidity

Chapter 7: Offer Document, Key Information Memorandum and Advertising

7.1 Scheme Information Document
7.2 Statement of Additional Information
7.3 Standard Observations
7.4 Key Information Memorandum
7.5 Extracts from Select Offer Documents
7.6 Advertising
Annexure 7.1: Key Contents of SID
Annexure 7.2: Key Contents of SAI
Annexure 7.3: Format of Key Information Memorandum

Chapter 8: Financial Statements

8.1 Asset Management Companies
8.2 Schemes
8.3 Disclosures and Other Commitments

Chapter 9: Scheme Comparison - Returns

9.1 Absolute Returns
9.2 Relative Returns

Chapter 10: Scheme Comparison - Risk

10.1 Quantitative Factors
10.2 Quantitative Factors Applicable Only to Debt
10.3 Qualitative Factors

Chapter 11: Scheme Comparison - Risk Adjusted Returns

11.1 Sharpe Ratio
11.2 Treynor Ratio
11.3 Jensen Alpha
11.4 Eugene Fama
11.5 Appraisal Ratio
11.6 Modigliani and Modigliani (M2)
11.7 Sortino Ratio
11.8 Which is the Best Measure?
11.9 CRISIL's Rating and Ranking

Chapter 12: Scheme Comparison - Investment Objective, Style Analysis and Other Factors

12.1 Investment Objective
12.2 Investment Styles
12.3 Qualitative Factors

Chapter 13: Performance Attribution, Drivers and Smart Beta

13.1 Performance Attribution
13.2 Alpha Drivers and Beta Drivers
13.3 Smart Beta

Chapter 14: Managing a Portfolio of Mutual Fund Schemes

14.1 Risk Profiling
14.2 Asset Classes and Generic Risk
14.3 Asset Allocation
14.4 Scheme Selection
14.5 Exit from Schemes
14.6 Tips and Tricks

Chapter 15: Mechanics of Investing in Mutual Funds: KYC, KYD and Investor Empowerment

15.1 Who Can Invest in Mutual Fund Schemes?
15.2 Investment by Qualified Foreign Investors (QFIs)
15.3 Investment by Foreign Portfolio Investors (FPIs)
15.4 Who cannot Invest in Mutual Fund Schemes?
15.5 Minimum Number of Investors
15.6 Know Your Customer (KYC)
15.7 Systematic Investment Plan (SIP), Systematic Withdrawal Plan (SWP) and Systematic Transfer Plan (STP)
15.8 Switches, Triggers and Dividend Transfer Plan (DTP)
15.9 Steps to Invest / Dis-invest Mutual Fund Units (Other than through Stock Exchange)
15.10 Steps to Invest / Dis-invest Mutual Fund Units (Through Stock Exchange)
15.11 Mutual Fund Utilities - The Aggregater
15.12 Cut-Off Time
15.13 Official Points of Acceptance
15.14 Post-Investment Servicing
15.15 Who Can Distribute Mutual Funds and Earn Brokerage
15.16 Know Your Distributor (KYD)
15.17 Brokerage, Commission and Transaction Charge
15.18 Supervision of Large Distributors
15.19 Investor Empowerment
Annexure 15.1: SIP - NAV up 1%
Annexure 15.2: SIP - NAV down 1%
Annexure 15.3: SIP- Random

Chapter 16: Investor Protection

16.1 Structural Protection
16.2 Role of AMFI
16.3 Rights of Unit Holders
16.4 Investor Relations Officer
16.5 SEBI
16.6 Implications under Various Other Statutes
16.7 The Role of Press
Annexure 16.1: Form for Nomination / Cancellation of Nomination

Chapter 17: Taxation

17.1 Asset Management Companies
17.2 Mutual Fund
17.3 Schemes
17.4 Investors
17.5 Tax in Specific Situations
17.6 Tax in Summary

Chapter 18: Big Data, Artificial Intelligence, Block-chain and Mutual Funds

18.1 Big Data
18.2 Artificial Intelligence
18.3 Block-chain

List of Abbreviations and Acronyms


Further Learning