Mutual Funds | Such Investments

Ms. Sonali Kale Gopal, Mr. Professor, Finance (MMS)

Tasgaonkar Yadavrao School of Business Administration

Chandai, Bhiwpuri Rd

The mutual fund industry is growing at a tremendous rate. A large number of plans have emerged from different financial resources. With the growing securities markets investors are attracted to these schemes.

Only a small segment of investors still invest in mutual funds and major sources of financial advisers are still followed by advertisements in different media. The general Indian investor, investors during a period of two to three years. There are also more likely to invest in fixed deposits because of the security associated with it.

In order to excel and make mutual funds a success, companies still need to create awareness and understand the psyche of Indian customers. There is a lack of awareness among people about mutual funds so there should be more advertising and other promotional campaigns to raise awareness. People are more interested in investing in equity funds rather than debt funds because companies are pushing more of the equity funds. Companies should also promote debt funds also providing security to customers. Companies need to know their customers on their computer operations to save time and make operations easier.

MEANING OF THE INVESTMENT FUNDS: -

A mutual fund is a professionally managed collective investment. that collects money from many investors and puts it in stocks, bonds, short-term money market and / or other securities. The fund manager, also known as portfolio manager, the fund invests and trade 's underlying securities, realizing gains or capital losses and passing any proceeds to individual investors. Mutual Fund is an investment company that pools money from shareholders and invests in a variety of securities such as stocks, bonds and money market instruments. Most mutual funds are ready to open buy back (redeem) its shares at net present value of the assets, which depends on the total market value of the fund's investment portfolio 's at the time of redemption. Most mutual funds continuously open new shares offered to investors.

Also known as an-end investment company, to differentiate it from a closed-end investment company. Mutual funds invest cash of many investors combined to meet the fund 's stated objective of the investment. The investment funds willing to sell and redeem their shares at any time in the bottom 's net present value of assets: total fund assets divided by shares outstanding.

In simple words, the mutual fund is a mechanism for pooling of resources by issuing units to investors and investing funds in securities in accordance with the objectives, as described in the bid document.

Investments in securities are spread across a wide sector of industries and sectors and therefore the risk is reduced. Diversification reduces the risk because all stocks may not move in the same direction at the same rate, at the same time. Mutual fund issues units to investors in accordance with quantum of money invested by them. Investors of mutual funds are known as unit holders.

Gains or losses are shared by the investors in proportion to their investments. Mutual funds normally come with a number of programs with different investment objectives which are launched from time to time. In India, a mutual fund must be registered with the Securities and Exchange Board of India (SEBI) which regulates securities markets before it can raise funds from the public.