A study on mutual funds and investors behavior
33 pages
published 05/28/2009
 
 
section Table of Contents
 
 
  1. Introduction
  2. The major advantages offered by mutual fund to all investors
  3. Disadvantages of mutual funds
  4. History of mutual funds
  5. Major mutual fund companies in India
  6. Association of mutual funds in India
    1. The objectives of AMFI
  7. The regulatory framework
  8. Role of stock exchange
  9. Asset management company: AMC
  10. Types of mutual funds and investment plans
  11. The importance of accounting knowledge
  12. Tracking mutual fund performance
  13. Life cycle guide to financial planning
  14. Classification of investors needs
  15. Questionaire and research
  16. Recommendations and conclusion
  17. Appendices
  18. Bibliography
 
 
section Summary
 
 
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:
 
 
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