Mutual Fund in India

Page 1 of 16

Mutual Fund in India

By | March 2013
Page 1 of 16
Master of Science in Management Specialization in Banking & Finance Research Methodology & Decision Analysis for Business (RMDAB) Assignment 2
Literature Review
TOPIC: MUTUAL INVESTMENT FUNDS IN INDIA

Student Name: Sangawar Pratik Shankar
Batch: MFBD51217A
FIN: G1190040U
Table of Contents:
1. Background…………………………………………………………Pg.3 2. Literature Review on Mutual Investment Funds…………………....Pg.7 3. Conclusion…………………………………………………………Pg.21 4. References…………………………………………………………Pg.23

Background
(a)Introduction
The Four Basic Components on which Indian financial system is based on are Financial Market, Financial Institutions, Financial Service and Financial Instrument. One of the most important components of Financial Instrument is Mutual Investment Fund (mutual fund). (Jaspal Singh, 2004) (Mason Dave, 1999)

“A mutual fund is a pool of money contributed by numerous investors, the capital gathered is invested to buy a hefty portfolio of securities” There are essentially three categories of mutual funds i.e. Money Market, Fixed Income and Stocks within each category there are variety of funds. (Mason Dave, 1999)

An investment company is a body with trained portfolio managers as investment experts, they pool up the investors’ small capitals or funds for the reason of bankroll in securities. The most well-known form of Investment organisation is the open-end management association. The Other type of investment funds are closed-end funds, exchange-traded funds, business development organizations and unit investment trusts. (Jaspal Singh, 2004)

The all above mentioned are civil funds the reason for that is, their share are publicly issued to investors and thus the funds and their shares are requisite to be registered with the Security Exchange Board of India (SEBI). Investment organisation/association that are secretly tender and issue their shares to...