What are Mutual Funds and top 10 performing mutual fund

What are Mutual Funds?

     
Mutual funds is an investment vehicle that is made by pooling funds from investment in securities such as stocks, bonds, money market instruments and other similar assets. Mutual funds are operated by fund managers, who invest the fund's capital in attempt to produce capital gains. As the investment is made across a wide industries and sectors, the associated risk is reduced to minimum. Mutual fund is issued to an individual based on the capital invested. Investors of mutual funds are referred as unitholders.

The profit or loss in the investment is equally shared by all the investors according to proportion of investment made. Mutual funds are launched in form of schemes with different investment objectives from time to time. A mutual fund scheme should be registered with Securities and Exchange Board of India (SEBI).


Mutual Funds in India - History
The concept of Mutual Funds in India emerged as success as early as 1990s, when Government allowed public sector banks and institutions to launch mutual funds schemes. Unit Trust of India was the first Mutual Fund in India set-up in the year 1963.

Security and exchange Board of India (SEBI) act was passed in the year 1192. The objective of SEBI are - to regulate security market and protect the interests of investor community. It is regulatory institutions which is responsible for formulating policies and guidelines for operation of mutual funds in India.

The list of top 10 performing mutual fund companies is as follow:

1. HDFC Mutual Fund

Inception Date – June 30th 2000

Trustee – HDFC Trustee Company Ltd.

Top Performing Schemes – AUM as on 30th April 09

+ HDFC Top 200 (2338 cr)
+ HDFC Equity (2759.30 cr)
+ HDFC MIP Long-term (887.90 cr)



2. Tata Mutual Fund

Inception Date – June 30th 1995

Trustee – Tata Trustee Company Pvt. Ltd.

Top Performing Schemes – AUM as on 30th April 09

+ Tata Pure Equity (269.95 cr)
+ Tata Index Nifty (6.77 cr)
+ Tata Short-term Bond (292.08 cr)



3. SBI Mutual Fund

Inception Date – June 29th 1987

Trustee – SBI Mutual Fund Trustee Company Pvt. Ltd.

Top Performing Schemes – AUM as on 30th April 09

+ Magnum Contra (1,958.50 cr)
+ Magnum Balanced (333.11 cr)
+ Magnum Multiplier Plus (687.15 cr)



4. Reliance Mutual Fund

Inception Date - June 30th 1995

Trustee – Reliance Capital Trustee Company Ltd.

Top Performing Schemes – AUM as on 30th April 09

+ Reliance MIP (168.52 cr)
+ Reliance Banking Retail (681.25 cr)
+ Reliance Diversified Power Sector Fund (3809.57 cr)



5. DSP BlackRock Mutual Fund

Inception Date – December 16th 1996

Trustee – DSP Merrill Lynch Trustee Company Pvt. Ltd.

Top Performing Schemes – AUM as on 30th April 09

+ DSPBR top 100 Equity (1167.08 cr)
+ DSPBR Equity (919.77 cr)
+ DSPBR GSF Longer Duration (425.67 cr)



6. Kotak Mutual Fund

Inception Date – June 23rd 1998

Trustee – Kotak Mahindra Trustee Company Ltd.

Top Performing Schemes – AUM as on 30th April 09

+ Kotak Bond Reular (445.69 cr)
+ Kotak 30 (688.14 cr)
+ Kotak opportunities (658.50 cr)



7. Principal Mutual Fund

Inception Date – November 25th 1994

Trustee – Principal Trustee Co. Pvt. Ltd

Top Performing Schemes – AUM as on 30th April 09

+ Principal Child Benefit (19.81 cr)
+ Principal Index (21.88 cr)
+ Principal Personal Tax Saver (332.53 cr)

8. Sundaram BNP Paribas Mutual Fund

Inception Date – August 24th 1996

Trustee – Sundaram BNP Paribas Trustee Company Limited

Top Performing Schemes – AUM as on 30th April 09

+ Sundaram BNP Paribas taxsaver (703.54 cr)
+ Sundaram BNP Paribas Select Focus Fund (880.78 cr)
+ Sundaram BNP Paribas Bond Saver (59.12 cr)



9. Franklin Templeton Mutual Fund

Inception Date – February 19th 1996

Trustee – Franklin Templeton Trustee Services Pvt. Ltd.

Top Performing Schemes – AUM as on 30th April 09

+ Franklin India Blue Chip Fund (1642.87 cr)
+ Templeton IGSF PF (32.68 cr)
+ Franklin India Prima Plus (1153.20 cr)



10. Birla Sun Life Mutual Fund

Inception Date - December 24th 1994

Trustee – Birla Sun Life Trustee Co. Ltd.

Top Performing Schemes – AUM as on 30th April 09

+ Birla GSF Long Term (10.48 cr.)
+ Birla Frontline Equity (481.14 cr)
+ Birla'95 (127.12 cr)