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Mutual Funds

-  Equity Funds : Invests in equity

- 

Debt : Invests in bonds

-  Hybrid Funds - invest in both, shares and bonds.

- 

Liquid mutual Funds: Its cash. Returns as interest rates

NFO

NFO stands for a New Fund Offer. When a new fund is launched for investors, it is known as a NFO. A

NFO could also be the launch of additional units of a close-ended fund.

Fund of Fund -A fund of fund is a kind of mutual fund that invests in a variety of mutual funds.

ETFs - Exchange Traded Funds (ETFs) are funds that can be traded on a stock exchange, just like

shares. These funds invest in shares, indexes or commodities.

Index Finds - Index funds are mutual funds that invest in shares of companies comprising a particular

index. These funds intend to replicate the performance of a particular index.

NAV - NAV stands for Net Asset Value of a mutual fund. This is basically the price of one unit of a mutual

fund. NAV can be calculated as follows: Assets of the fund – Liabilities of the fund / Number of

outstanding units for that fund. Mutual fund companies have to declare the NAV of their funds at least

once a week. However, most companies declare it at the end of every working day.

Liquid Funds- Liquid funds are mutual funds that offer high liquidity. This means, the units of these

funds can be sold immediately, and the invested amount can be redeemed quickly.

Open Ended Fund- Open-ended funds can be bought and sold at any time; they have no fixed tenure.

Close Ended Fund - You can buy units of close-ended mutual funds only when a mutual fund companylaunches the fund. Once you buy them, you have to hold your investment for a fixed tenure. 

Commercial transaction-Deals with Money

-  Redemptions-> withdraw money

-  Dividends-> bonus amounts

- 

Interest rates->interest on the investment

-  Cancellations/Closure

Non-commercial Transactions

-  Consolidation

- 

Lien/pledge/mortgage

-  Transfer

- 

Power of Attorney

- 

Addendum of company

NAV Calculations

Folio numbers, units

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Mutual Funds in India follow a 3-tier structure.

Tier 1

There is a Sponsor (the First tier), who thinks of starting a mutual fund. The Sponsor approaches the

Securities & Exchange Board of India (SEBI), which is the market regulator and also the regulator for

mutual funds.Tier 2

Once SEBI is convinced, the sponsor creates a Public Trust (the Second tier) as per the Indian Trusts

Act, 1882. Trusts have no legal identity in India and cannot enter into contracts, hence the Trustees

are the people authorized to act on behalf of the Trust. Contracts are entered into in the name of

the Trustees. Once the Trust is created, it is registered with SEBI after which this trust is known as

the mutual fund .

Tier 3

This is the role of the Asset Management Company (the Third tier). Trustees appoint the Asset

Management Company (AMC), to manage investor’s money. 

Custodian

A custodian’s role is safe keeping of physical securities and also keeping a tab on the corporateactions like rights, bonus and dividends declared by the companies in which the fund has invested.

The Custodian is appointed by the Board of Trustees.

Registrar & Transfer Agent

Registrars and Transfer Agents (RTAs) perform the important role of maintaining investor records. All

the New Fund Offer (NFO) forms, redemption forms (i.e. when an investor wants to exit from a

scheme, it requests for redemption) go to the RTA’s office where the information is converted from

physical to electronic form. How many units will the investor get, at what price, what is the

applicable NAV, how much money will he get in case of redemption, exit loads, folio number, etc. is

all taken care of by the RTA.

WHAT IS THE PROCEDURE FOR INVESTING IN AN NFO?

The investor has to fill a form, which is available with the distributor. The investor must read the

Offer Document (OD) before investing in a mutual fund scheme. In case the investor does not read

the OD, he must read the Key Information Memorandum (KIM), which is available with the

application form. Investors have the right to ask for the KIM/ OD from the distributor. Once the

form is filled and the cheque is given to the distributor, he forwards both these documents to the

RTA. The RTA after capturing all the information 11 from the application form into the system sends

the form to a location where all the forms are stored and the cheque is sent to the bank where the

mutual fund has an account. After the cheque is cleared, the RTA then creates units for the investor.

The same process is followed in case an investor intends to invest in a scheme, whose units are

available for subscription on an on-going basis, even after the NFO period is over.

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Investor services

Distributor Services

AMC Services

Other Services

Refer - https://www.karvymfs.com/karvy/InvestorServices/InvLogin.aspx 

SIP/STP/SWP Cancellation Request 

Common Trasaction Form 

KTRACK User Guide 

Karvy Easy SMS services guide 

Consolidated Account Statement(KARVY + CAMS + FTAMIL + SBFS) 

NAV Subscription 

Post Query / Complaint 

Investor Services Desk 

Know Your Transaction Status 

Investor Transaction Report 

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  Transaction slip 

PAN Based Services 

Capital Gains by Emailid 

Portfolio By Email ID 

Portfolio By PAN 

Account Statement By Email ID 

Account Statement By Folio 

Capital Gains By Folio 

Refer -https://www.karvymfs.com/karvy/ 

Links

http://mutualfund.birlasunlife.com/Pages/Individual/Tools-Knowledge/FAQs.aspx 

http://en.wikipedia.org/wiki/Mutual_fund 

http://amc.ppfas.com/knowledge-center/investor-education-programme/Pledge-lien-on-mutual-

funds/index.php#axzz330JLjUK4

Glossary

http://www.janotohmano.com/glossary.htm 

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