Mutual Funds, India

Mutual origins - Concept A Mutual Fund is a trust that pools the savings of a keep down of investors who sh ar a common financial goal. The money thus collected is whence invested in capital securities effort instruments such as shares, debentures and separate securities. The income earned through these investments and the capital appreciation realized are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed handbasket of securities at a relatively low cost. The flow graph below describes broadly the working of a mutual lineage: Mutual Fund Operation Flow Chart Mutual money Industry in India The origin of mutual memory board assiduity in India is with the introduction of the concept of mutual fund by UTI in the year 1963. Though the growth was slow, but it quicken from the year 1987 when non-UTI players entered the industry. In the past decade, Indian mutual fund industry had seen a dramatic imporvements, both qualitywise as comfortably as quantitywise. Before, the monopoly of the market had seen an ending phase, the Assets Under Management (AUM) was Rs. 67bn. The head-to-head sector entry to the fund family rose the AUM to Rs.

470 bn in skirt 1993 and till April 2004, it reached the height of 1,540 bn. Putting the AUM of the Indian Mutual finances Industry into comparison, the total of it is less than the deposits of SBI alone, constitute less than 11% of the total deposits held by the Indian banking industry. The main reason of its sad growth is that the mutual fund industry in India is raw(a) in the country. Large sections of Indian investors are yet to be intellectuated with the concept. Hence, it is the prime responsibility of all mutual fund companies, to market the product correctly abreast of selling. The mutual fund industry can be broadly put into four phases consort to the development of the sector. Each phase is briefly... If you want to get a full essay, order it on our website: Ordercustompaper.com

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