Mutual funds
Summary :
Table of Contents
- Concept of mutual fund.
- Organization of mutual fund.
- History of the Indian mutual fund industry.
- Why mutual funds?
- Operations of mutual funds.
- Company profile.
- Types of schemes in mutual funds.
- Net asset value (NAV).
- Evaluation report.
- Sharpe ratio.
- Treynor ratio.
- Glossary.
Abstract
A mutual Fund is the ideal investment vehicle for today's complex and modern financial scenario. Markets for equity shares, bonds, and other fixed instruments. Price changes in these are driven by global events occurring in faraway places. A typical individual is unlikely to have the knowledge, skills, inclination and time to keep track of ownership of his assets, investments, brokerage dues and bank transactions etc.
A mutual Fund is the answer to all these situations. It appoints professionally qualified and experienced staff that manages each of these functions on a full time basis. The large pool of money collected in the fund allows it to hire such staff at a very low cost to each investor. In effect, the mutual fund vehicle exploits economies of scale in all three areas - research, investments and transaction processing. While the concept of individuals coming together to invest money collectively is not new, the mutual Fund gained popularity only after the Second World War. Globally, there are thousands of firms offering tens of thousands of mutual Fund with different investment objectives. Today mutual Fund collectively manages almost as much as or more money as compared to Banks.
A mutual Fund is the answer to all these situations. It appoints professionally qualified and experienced staff that manages each of these functions on a full time basis. The large pool of money collected in the fund allows it to hire such staff at a very low cost to each investor. In effect, the mutual fund vehicle exploits economies of scale in all three areas - research, investments and transaction processing. While the concept of individuals coming together to invest money collectively is not new, the mutual Fund gained popularity only after the Second World War. Globally, there are thousands of firms offering tens of thousands of mutual Fund with different investment objectives. Today mutual Fund collectively manages almost as much as or more money as compared to Banks.
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