A study on mutual funds and investors behavior

Type :

Research papers

Pages :

33 pages

Format :

.doc

Published date :

05/28/2009

Category :

Economics & finance

Sub category :

Finance

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Summary :

Introduction
The major advantages offered by mutual fund to all investors
Disadvantages of mutual funds
History of mutual funds
Major mutual fund companies in India
Association of mutual funds in India
1. The objectives of AMFI
The regulatory framework
Role of stock exchange
Asset management company: AMC
Types of mutual funds and investment plans
The importance of accounting knowledge
Tracking mutual fund performance
Life cycle guide to financial planning
Classification of investors needs
Questionaire and research
Recommendations and conclusion
Appendices
Bibliography

Abstract

mutual fund is a pool of money collected from investors and is invested according to certain investment options. A mutual fund is a trust that pools the saving of a no. of investors who share a common financial goal. A mutual fund is created when investors put their money together. It is, therefore, a pool of investor's fund. 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 no. of units owned by them.

The most important characteristics of a fund are that the contributors and the beneficiaries of the fund are the same class of people namely the investors. The term mutual fund means the investors contribute to the pool and also benefit from the pool. The pool of funds held mutually by investors is the mutual fund.

A mutual fund business is to invest the funds thus collected according to the wishes of the investors who created the pool. Usually the investors appoint professional investment managers create a product and offer it for investment to the investors. This project represents a share in the pool and pre status investment objectives.

Thus, a mutual fund is the most suitable investment for a common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at relatively low cost.
If mutual funds are emerging as the favorite investment vehicle it is because of the many advantages. They have over other forms and avenues of investing parties for the investors who has limited resources available in terms of capital and ability to carry out detailed reserves and market monitoring. These are the major advantages offered by mutual fund to all investors: