2. What is mutual fund?
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 appreciation realized are shared by its unit holders
in proportion to the number of units owned by them.
Thus a 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.
3. Introduction
The first introduction of a mutual fund in India occurred in
1963, when the Government of India launched Unit Trust of
India (UTI). Until 1987, UTI enjoyed a monopoly in the
Indian mutual fund market. Then a host of other
government-controlled Indian financial companies came up
with their own funds. These included State Bank of
India, Canara Bank, and Punjab National Bank. This market
was made open to private players in 1993, as a result of the
historic constitutional amendments brought forward by the
then Congress-led government under the existing regime
of Liberalization, Privatization and Globalization (LPG). The
first private sector fund to operate in India was Kothari
Pioneer, which later merged with Franklin Templeton.
4. Objectives of the study
The research will therefore seek to explore and
investigate the following:
To find out why Mutual fund industries are growing.
To find out why investors prefer to invest in mutual
funds.
To find out what are the drawbacks of mutual funds
5. Research methodology
The research designs used for this research are:
Exploratory research
Descriptive research
We select these two because we know some think about
the problem.
6. Data collection
For data collecting we do a set of activities that are:
Conduct a literature review
Conduct a telephone interview
Using questionnaire method
Analyze all the data
7. Assumptions
If the mutual fund industries will grow up then it
motivate to the investors to invest more & more
because improvement in mutual fund industries
means increase in dividend payout. Due to this income
of the investors will increase and this will give more
revenue to the government.
If the mutual fund industries will goes down then it
discourages the investors to invest money and this is
bad for the investors as well as for the economy.