Introduction to Mf

Paper On adit to shared Funds in India 1 Introduction: Mutual Fund is an instrument of investing money. Nowadays, marge range have fallen down and are generally below the inflation rate. Therefore, keeping greathearted amounts of money in bank is not a wise option, as in very terms the value of money decreases over a expiration of time. One of the options is to invest the money in stock market. nevertheless a common investor is not informed and competent replete to understand the workings of stock market. This is where joint monetary resource abide by to the rescue. A mutual investment trust is a group of investors in operation(p) through a fund manager to purchase a diverse portfolio of stocks or bonds. Mutual funds are exceedingly cost efficient and very easy to invest in. By pooling money to masturbateher in a mutual fund, investors mess purchase stocks or bonds with much lower trading cost than if they tried to do it on their own. Also, one doesnt have to trope out which stocks or bonds to buy. But the biggest advantage of mutual funds is diversification. Diversification means spreading out money crossways many different types of enthronizations. When one investment is down another(prenominal) might be up. Diversification of investment holdings reduces the risk tremendously.

Thus, Mutual Funds are essentially portfolios, which co-mingle the savings of a large number of individuals in a large diversified investment portfolio. Mutual funds have long been popular in the developed economies. Overview of Mutual Funds in India: ? In India, the largest mutual fund is UTI, which was established in the year 1964 in separate to encourage the small investors to invest in the equity market. ? The whole Trust of India has nearly 35, 000 agents in the country. ? The Securities Exchange Board of India (SEBI) regulates the execution of the mutual funds. ? The Mutual funds should be set up as trusts under the guidelines of the Indian Trusts Act. ? Activity pertaining to the management of fund should be directed by an asset management... If you want to get a full essay, order it on our website: Orderessay

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