Mutual Fund And Mutual Funds Essay

Mutual fund Industry was introduced in India 1963 with the formation of Unit Trust of India. During the last few years many extraordinary and rapid changes have been taking place in the Mutual fund industry. Indian economy is highly developing. The development is taken place due to the growth in the financial system.

     Only 25 years ago, there were fewer than 500 funds available. Today, there are over 7,000, with more added every year. There are many advantages to buying mutual funds, but there are disadvantages as well. Mutual funds can offer instant diversification, and diversification reduces risk. For example, funds can reduce risk by spreading it among a large number of investments, if one stock performs badly, its impact on the overall portfolio is lessened. Funds can also reduce risk by investing in different asset classes: stocks (which can include international as well as U.S. stocks), bonds, cash and

JENSEN, M. C. 1968. The performance of mutual funds in the period 1945–1964. The Journal of finance, 23, 389-416.

Mutual funds are those professionally managed investment pools that, in a way, show the performance of several varied securities like stocks, bonds, and shares. They are usually organized by an advisory firm for the purpose of offering the fund 's shareholders a specific investment goal.

When an investor considers to investment money, the first challenge that almost every investor face is numerous options to choose from stocks, bonds, mutual funds & so on. “Equity is one the key asset class which beats inflation in the long run.” (The Times of India, 5th Feb 2015). “Equity mutual funds help investors generate better inflation-adjusted returns, without spending a lot of time and energy on it. While most people consider letting their savings 'grow ' in a bank, they don 't consider that inflation may be nibbling away its value.” (The Hindu, 14th March 2016). Purpose of this study is to analyze the past performance of three global equity mutual funds of State Street Global Advisors (SSGA) & Northern Trust (NT) on the basis of equivalent investment style, asset manager, historical returns & application of statistical tools. This will help in understanding performance of mutual funds in terms of risk & return, asset manager’s investment strategies & asset manager’s performance.

The investment procedure on a mutual fund is a simple and quick matter and this explains why it is so popular and

A mutual fund is an open-end investment company that invests money of its shareholders in a usually diversified group of securities of other corporations, as defined in the Merriam-Webster dictionary. Mutual funds help with financing and investing opportunities. They give the small investors a chance to invest their money in other areas besides stocks and bonds. There is multiple mutual funds to choose from and different reasons why shareholders should choose them. As popular as mutual funds have become, there is downfalls to them like most investment opportunities. In 2003, mutual funds were giving a bad name when a scandal was brought public. These opportunities and issues will be discussed.

A mutual fund is a collection of diversified investments combined into one fund chosen by the investment company. The mutual fund is classified by what type of funds are included within the fund. When an investor choses to invest in a mutual fund, he or she is adding their money to a pool of other investors money. This money is used to invest in a number of different securities based on specific investment goals. Investment companies choose to include many different stocks, as well as bonds or money market instruments in order to reduce risk and completely diversify the fund (Tyson, 2007). The investor owns shares of the funds rather than owning the underlying investments (Morris & Morris, 2005).

Many investors today utilize mutual funds as part of their overall investment plan. Whether you must make your own mutual fund selections for your 401(K) or employer sponsored retirement plan, or use a professional investment advisor for other types of investment accounts, mutual funds can

Mutual Funds have become increasingly popular in the last 20 years, with the number of investors rising to 80 million people. This adds up to half the households in America owning mutual funds, with most having a basic knowledge on the matter.

Mutual funds are a type of certified managed combined investment schemes that gathers money from many investors to buy securities. There is no such accurate definition of mutual funds, however the term is most commonly used for collective investment schemes that are regulated and available to the general public and open-ended in nature. Hedge funds are not considered as any type of mutual funds.

Financial markets are constantly becoming more efficient by providing more promising solutions to the investors. Being a part of financial markets although mutual funds industry is responding very fast by understanding the dynamics of investor’s perception towards rewards, still they are continuously following this race in their endeavor to differentiate their products responding to sudden changes in the economy. Thus, it is high time to understand and analyse investor’s perception and expectations, and unveil some extremely valuable information to support financial decision making of mutual funds. Financial markets are becoming more exhaustive with financial products seeking new innovations

The services provided by the unit trust fund managers are not free. There are fees and charges payable by the unit holders to the unit trust schemes. Granted these fees are almost negligible compared to the professional expertise received by the investors, it is something the unite holders have to bear.

The fund was launched on 10th June 2010 which is currently being managed by Harish Zaveri1 and the overseas investments are managed by Jay Kothari. Over the past three years the fund asset under management has increased from INR 361 crores in December 2012 to INR 1,177 crores as on December 2015. The fund is positioned as large cap fund with a focus on selected stocks. It is currently benchmarked against S&P BSE 200.2

Capital market play vital role in financial growth. Mutual fund is one of the securitization vehicles that commonly practice in today’s modern economics environment. Levy and Post (2005) mentioned investors, regardless of the type of investment they choose, have one common goal which is to get return out of their investment. Investors often have risk and return trade-off in determining their desire return. Thus, it is important to understand the financial stance of the investors in order to determine types of investments that suit them. This essay’s aim first to discuss 2 types of mutual funds, open end and close end investment. Going further is to relate them with the emerging Muslim’s economy conditions. It is believed that Muslim’s economy is way far behind due to their weakness in the capital market. Honohan (2008) discovered more than 70% Muslims do not utilize financial services due to their concern of the financial instrument principle which seems to them contradict with the Islamic law. Second to suggest the type of funds that suitable for the emerging Muslims economy in order to promote social wealth and long-suffered poverty issues amongst the country.