Performance of Mutual Funds
Chapter-1
INTRODUCTION
1.1 General :
A mutual fund is just the connecting bridge or a financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective. The mutual fund will have a fund manager who is responsible for investing the gathered money into specific securities (stocks or bonds). When you invest in a mutual fund, you are buying units or portions of the mutual fund and thus on investing becomes a shareholder or unit holder of the fund.
Mutual funds are considered as one of the best available investments as compare to others they are very cost efficient and also easy to invest in, thus by pooling money together in a mutual fund, investors can purchase stocks or bonds with much lower trading costs than if they tried to do it on their own. But the biggest advantage to mutual funds is diversification, by minimizing risk & maximizing returns
1.2 Problem Identification:
The study basically made to educate the investors about Mutual Funds. Analyze the various schemes to highlight the risk and return of diversity of investment that mutual funds offer. Thus, through the study one would understand how a common man could fruitfully convert a pittance into great penny by wisely investing into the right scheme according to his risk- taking abilities.
1.3 OBJECTIVES:
1. To project mutual funds as the ‘productive avenue’ to invest in contrast to the laxity of ‘bank investing’.
2. To show the wide range of investment options available in MF’s by explaining various schemes offered by different AMC’s.
3. To help an investor to make a right choice of investment, while considering the inherent risk factors.
4. To understand the recent trends in the MF world.
5. To understand the risk and return of the various schemes.
6. To find out the various problems faced by Indian mutual funds and possible solutions.
1 1.4 SCOPE OF THE STUDY:
The study is limited to the analysis
INTRODUCTION
1.1 General :
A mutual fund is just the connecting bridge or a financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective. The mutual fund will have a fund manager who is responsible for investing the gathered money into specific securities (stocks or bonds). When you invest in a mutual fund, you are buying units or portions of the mutual fund and thus on investing becomes a shareholder or unit holder of the fund.
Mutual funds are considered as one of the best available investments as compare to others they are very cost efficient and also easy to invest in, thus by pooling money together in a mutual fund, investors can purchase stocks or bonds with much lower trading costs than if they tried to do it on their own. But the biggest advantage to mutual funds is diversification, by minimizing risk & maximizing returns
1.2 Problem Identification:
The study basically made to educate the investors about Mutual Funds. Analyze the various schemes to highlight the risk and return of diversity of investment that mutual funds offer. Thus, through the study one would understand how a common man could fruitfully convert a pittance into great penny by wisely investing into the right scheme according to his risk- taking abilities.
1.3 OBJECTIVES:
1. To project mutual funds as the ‘productive avenue’ to invest in contrast to the laxity of ‘bank investing’.
2. To show the wide range of investment options available in MF’s by explaining various schemes offered by different AMC’s.
3. To help an investor to make a right choice of investment, while considering the inherent risk factors.
4. To understand the recent trends in the MF world.
5. To understand the risk and return of the various schemes.
6. To find out the various problems faced by Indian mutual funds and possible solutions.
1 1.4 SCOPE OF THE STUDY:
The study is limited to the analysis