Role of Mutual Fund in India- A Study
R.H.Ramesh, Asst.Professorof Commerce
SMYK,Govt.First Grade College. Telsang. Athani(Tq) Belagavi (Dist) ramesh.hanumanthappakolhi@gmail.com Abstract
Savings form an important part of the economy of any nation. With savings invested in various options available to the people, the money acts as the driver for growth of the country. Indian financial systems too present multiple avenues to the investors. Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. Each mutual fund scheme has a defined investment objective and strategy. Mutual fund is a trust that pools money from a group of investors (sharing common financial goals) and invest the money thus collected into asset classes that match the stated investment objectives of the scheme. Since the stated investment objectives of a mutual fund scheme generally form the basis for an investor 's decision to contribute money to the pool, a mutual fund can not deviate from its stated objectives at any point of time. From above backdrop the present study analysis role of mutual fund in general & Future Prospects of Mutual Fund Industry in India in particular.
Key Words: Mutual Fund, Securities & Exchange Board of India (SEBI), Fast Moving consumable Goods (FMCG), etc,
Introduction
“….Mutual funds are popular among all income levels. With a mutual fund, a
Mutual Funds are a pool of funds collected from many investors in order to purchase stocks, bonds, and other investments in greater amounts. Mutual funds are shares of ownership in a group of companies.
An individual stock's diversifiable risk, which is measured by the stock's beta, can be lowered by adding more stocks to the portfolio in which the stock is held.
The advantages of the Mutual funds are professionally managed by portfolio management, and attempt to generate income such as capital gains on sales, dividends on stocks or interest on bonds for the investors. Most of Investors purchase in mutual funds due to the lack of time or expertise to manage their own portfolios. Investing in a mutual fund is a relatively inexpensive to a small investor to get a full-time portfolio manager to control or monitor their investments.
The Vanguard Group offers an array of mutual funds, exchange-traded funds, brokerage, and asset management. When choosing and comparing mutual funds, there are characteristics that you need to first evaluate. This paper will review five different categories of mutual funds that Vanguard Group offers its investors.
Money Market Mutual Funds are investments whose purpose is to provide investors with a safe place to invest. They are
“However, there are over 10,000 mutual funds in operation, and these funds vary greatly according to investment objective, size strategy, and style. Mutual funds are available for virtually every investment strategy (e.g. value, growth), every sector (e.g. biotech, internet), and every country and region of the world. So even the process of selecting a fund can be tedious” (Staff).
After liberalization of Indian economy, stock brokerage has become the center point of all activities related to investment driven by increasing globalization. SEBI (Securities and Exchange Board of India), the body which regulates the activities in capital markets across the country brought in various reforms to ensure greater transparency in securities trading and investment in India. With the backdrop of these reforms, Indian stock markets have undergone tremendous improvements over the last two decades. Stock broking industry has grown as one of the most sought and vibrant industries in India. As per IRCA, the
Historically, people invest their money in mutual funds as a means to generate extra income. This can be separated into either stocks or bonds, with each having their specialty in a portfolio. The following report provides an analysis of two funds, the Fidelity® Nasdaq® Composite Index Fund (FNCMX) and the Fidelity® Floating Rate High Income Fund (FFRHX). The analysis of the yearly returns of each fund from 2005-2014 will include the risk and return for investing in each with key statistics such as mean, median, standard deviation, and range for indicators of their performance. These statistics will be paired with visuals so the client can have a visual representation of what they look like. The analysis will also compare the performance
Mutual fund also offers good investment opportunities to the investors. Like all investment, they also carry certain risks. The investors should compare the risks and expected yields after adjustment of tax on various instruments while taking investment decisions. The Indian mutual fund industry has witnessed several structural and regulatory reforms.
Mutual funds are an easy, convenient way to invest, without having to worry about choosing individual stocks. A mutual fund can be defined as a single portfolio of stocks, bonds, and/or cash managed by an investment company on behalf of many investors. The investment company manages the fund, and sells shares in the fund to individual investors. When one invests in a mutual fund, they become a part-owner of a large investment portfolio, along with all the other shareholders of the fund. The fund manager invests the contributions when shares are purchased, along with money from the other shareholders. Every day, the fund manager counts up the value of all the fund's holdings, figures out how many shares have been purchased by
During the decade of the 1990’s through the year 2001 there were some major shifts in the deployment of investment assets. Based on a variety of measures, mutual funds grew dramatically as vehicles for investing in portfolios of stock. Specifically net cash flows into equity funds grew from $13 billion in 1990 to $310 billion in the year 2000.1 During that same period the number of equity funds rose from 1,100 to 4,395, while the number of accounts in those funds increased from 22 million to 162 million. The cumulative effect of the new money injected into equity funds, together with reinvestment of dividends, plus the attendant stock price appreciation has produced a phenomenal
The investor can buy individual stocks or let somebody else manage his investments by investing in a mutual fund or by hiring a registered investment advisor to manage a separate individualized account. There are differences in transaction reporting, taxes, investment focus, timing of purchases and sales, and in the profits generated.
What type of financial investments would you invest in if you were given 10,000 dollars, what made you choose these investments, as well as; how did your choices affect your decision as to tracking these financial investments through the usage of financial strategies and trends. While finding the right pecuniary investment to finance in is never an easy decision, one must first do their research as to what type of financial resources are available on the market to invest in; then apply those financial decisions and strategies to their financial market plan. Let’s begin with what a financial market does, “financial markets perform a vital function: they transfer funds from savers (individuals and organizations willing to defer using some
Mutual funds are pools of money. Money from many different individual investors can be pooled with money from, say, the retirement fund of a global corporation.
A mutual fund is a group of stocks and/or bonds put together, to be invested in as one, and similarly to stocks, investors own shares, which signify a partial ownership on the fund.