Mutual Fund and Market Risk
ROUGH DRAFT
Critical Analysis on Mutual fund as a mode of investment to reduce the Market risk
SUBMITTED BY:
Raghav Vashist: 10BBL061
UNDER THE GUIDANCE OF
Dr. Pranav Saraswat
SUBMITTED TO
INSTITUTE OF LAW, NIRMA UNIVERSITY
ACADEMIC YEAR 2012-2013
CHAPTER-1
INTRODUCTION
A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciations realized are shared by its unit holders in proportion to the Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. The flow chart below describe mutual fund:
Mutual Fund gets their earnings in two ways:
1. First is the most organic way, which is the dividend they get on the securities they hold.
2. If the fund sells securities that have increased in capital gain. This is reflected in NAV of each unit.
3. Third is by the redemption of their units by investors will be at discount to the current NAV[net asset value].
What Is a Mutual Fund?
A mutual fund is a company that invests in a diversified portfolio of securities. People who buy shares of a mutual fund are its owners or shareholders. Their investments provide the money for a mutual fund to buy securities such as stocks and bonds. A mutual fund can make money from its securities in two ways: a security can pay dividends or interest to the fund or a security can rise in value. A fund can also lose money and drop in value.
The Mutual Funds originated in UK and thereafter they crossed the border to reach other destinations. The concept of MF was Indianized only in the later part of the twentieth century in the year 1964 with its roots embedded into Unit Trust of India (UTI). Now after
Critical Analysis on Mutual fund as a mode of investment to reduce the Market risk
SUBMITTED BY:
Raghav Vashist: 10BBL061
UNDER THE GUIDANCE OF
Dr. Pranav Saraswat
SUBMITTED TO
INSTITUTE OF LAW, NIRMA UNIVERSITY
ACADEMIC YEAR 2012-2013
CHAPTER-1
INTRODUCTION
A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciations realized are shared by its unit holders in proportion to the Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. The flow chart below describe mutual fund:
Mutual Fund gets their earnings in two ways:
1. First is the most organic way, which is the dividend they get on the securities they hold.
2. If the fund sells securities that have increased in capital gain. This is reflected in NAV of each unit.
3. Third is by the redemption of their units by investors will be at discount to the current NAV[net asset value].
What Is a Mutual Fund?
A mutual fund is a company that invests in a diversified portfolio of securities. People who buy shares of a mutual fund are its owners or shareholders. Their investments provide the money for a mutual fund to buy securities such as stocks and bonds. A mutual fund can make money from its securities in two ways: a security can pay dividends or interest to the fund or a security can rise in value. A fund can also lose money and drop in value.
The Mutual Funds originated in UK and thereafter they crossed the border to reach other destinations. The concept of MF was Indianized only in the later part of the twentieth century in the year 1964 with its roots embedded into Unit Trust of India (UTI). Now after