Content area
Full Text
ABSTRACT
A mutual fund represents pooled savings or funds individual investors managed by professionals and experts in investment. The investment is diversified to spread risk and to ensure good return (dividend or capital gain) to the investors. Mutual funds as an investment vehicle have gained immense popularity in the current scenario, which is clearly reflected in the robust growth levels of assets under management. This study is an attempt to overview the macro economic analysis of mutual funds in India since its birth.
Keywords: Investment, Asset under management, Net Asset Value.
INTRODUCTION
A mutual fund is a financial intermediary which acts as a instrument of investment. It collects funds from different investors to a common pool of investible funds and then invests these funds in wide variety of investment opportunities. It provides a mean of participation in the stock market for small investors who have neither the time, nor the money, nor perhaps the expertise to understand direct investment in equity successfully. The investment is diversified to spread risk and to ensure good return (dividend or capital gain) to the investors. Mutual funds are professionally managed. The resource collected by funds is managed by professionals and experts in investment.
Mutual funds as an investment vehicle have gained immense popularity in the current scenario, which is clearly reflected in the robust growth levels of assets under management. This study is an attempt to overview the macro economic analysis of mutual funds in India since its birth.
I-Growth of Mutual Fund industry in India
Mutual funds go back to the times of Egyptians and Phoenicians when they sold shares in caravans and vessels to spread the risk of these ventures. The foreign and colonial government Trust of London of 1868 is considered to be fore-runner of the modern concept of mutual funds. The USA is, however considered to be Mecca of concept of mutual funds. In 1964 with the formation of Unit Trust of India, the Indian mutual fund industry took birth in India. The UTI commenced its operation in July 1964 with twin objectives of savings mobilization especially from small savers group & its investment in corporate securities. The resource mobilization by UTI was profitable but through risky channels of investment. It enables the small...