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222 Financial Management
Types of Mutual Fund
Ownership
point of View
Scheme of
Operation point of
View
Portfolio point of
View
Location point
of View
Public
Sector
Private
Sector MF
Growth Income Balanced
Domestic
Fund
Global
Fund
Regional
Fund
Sector
Fund
Open ended
Scheme
Closed ended
Scheme
Fig. 12.5 Types of Mutual Fund
Public Sector Mutual Fund
Unit Trust of India is one of the public sector mutual funds operating from 1964 and it
enjoys the monopoly power in the field of mutual funds up to 1987. After 1987, Public
Sector Commercial Banks and Life Insurance Corporation of India also entered into mutual
funds activities. State Bank of India, Canara Bank, Punjab National Bank, General Insurance
Corporation are some of the public sector mutual funds activities.
Private Sector Mutual Fund
Apart from UTI and public sector commercial banks, some of the private sector financial
institutions also entered into the mutual fund activities in India from 1990 onwards. Kothari
Pioneer mutual fund, Twentieth century mutual fund, ICKI mutual fund, Morgan Stanly
mutual fund, Taurus mutual fund and CRB mutual fund are some of the examples of the
private sector mutual fund.
Open Ended Mutual Fund
When the units are sold and redeemed at any time on-going basis at the price determined
by the funds Net Assets Value (NAV) is called as open ended mutual fund. These mutual
fund has no fixed maturity periods. There is no ceilling on the amount invested by the
investors in these funds, and they can sell the units back to mutual funds whenever they
decide. Net Assets Value of the mutual fund is calculated by the following formula: