Indian Mutual Fund Industry : An Overview Essay

Indian Mutual Fund Industry : An Overview Essay

Length: 1287 words (3.7 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

MUTUAL FUNDS – AN OVERVIEW
To state in essential words, a typical resource accumulates the store reserves from minimal money related experts, place them in Government and other corporate securities and win pay through premium and benefits, other than capital expansion. It takes a shot at the standard of" little drop of water makes a noteworthy ocean '. An open-end resource is one that is available for enrolment all as the year advanced. These don 't have a changed advancement. Theorists can accommodatingly buy and offer units at Net Asset Value ("NAV") related expenses. The key part of open-end arrangements is liquidity.



PROFILE OF INDIAN MUTUAL FUND INDUSTRY
The Mutual resource industry in India started in 1963 with the course of action of UTI (joined trust of India), at the movement of organization of India. The chronicled background of Mutual Funds in India can be broadly isolated into Four Phases.
First Phase-1964-87
Unit Trust of India was developed by a showing of Parliament. It was set up by the Reserve Bank of India and worked under the Regulatory and Administrative control of the Reserve Bank of India. In 1978 UTI was de-associated from the RBI and IDBI accepted control over the managerial and administrative control set up of RBI. The principle arrangement dispatched by UTI was Unit Scheme 1964. Around the end of 1988 UTI had Rs. 6700 crores of advantages under organization.
Second Phase 1987-1993
1987 promoted the entry of non-UTI, open range shared resources set up by open division banks and life scope Corporation of India (LIC) and general Insurance Corporation of India (GIC). SBI Mutual resource was the essential non-UTI Mutual resource developed in June 1987 took after by can bank Mutual resource (Dec 1987)...


... middle of paper ...


...n of common assets in India from the day the idea of shared asset took birth in India. It was 1963. Unit Trust of India welcomed financial specialists or rather to the individuals who put stock in reserve funds, to stop their cash in UTI Mutual Fund. The execution of common assets in India in the underlying stage was not by any means nearer to acceptable level. Individuals infrequently comprehended, and obviously contributing was out of inquiry. In any case, yes, approximately 24 million shareholders were acclimated with ensured exceptional yields by the start of liberalization of the business in 1992. This great record of UTI got to be advertising apparatus for new participants. The desires of financial specialists touched the sky in productivity component. Be that as it may, individuals were miles far from the readiness of dangers element after the liberalization.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Mutual Fund Performance in Bull and Bear Market: The Case of Pakistani Mutual Fund

- Chapter 2 Overview of the Mutual Funds in Pakistan 2.1 History of Mutual Fund There are main two types of mutual funds are available open end and closed end funds for the Pakistani investors. Close End mutual funds are traded in stock exchange, directly every investor can buy or sell these funds in the stock market. Prices of these funds are determined on the basis of demand and supply of the shares rather than net assets value in case of closed end mutual funds. In 1962, Government of the Pakistan established open end mutual fund with the name of National Investment Unit Trust (NITL) commonly known as NIT....   [tags: Economics]

Better Essays
2286 words (6.5 pages)

Corporate Fund : A Mutual Fund Essay

- A mutual fund is an investment vehicle in which investor’s pool their resources together to invest in multiple different debt and equity instruments. They are operated by mutual fund managers who attempt to create a diversified portfolio, while still trying to achieve capital gains on the assets in the fund, paying close attention to the investors’ appetites for risk. The goal of a mutual fund is to pool multiple investor’s funds together so they can be invested at a level higher than any one investor could achieve on their own, with the end game being returns that can be enjoyed by all in a “mutual” benefit system....   [tags: Investment, Mutual fund, Hedge fund, Finance]

Better Essays
765 words (2.2 pages)

The Management Of The Lic Mutual Fund Essay

- The LIC Mutual Fund was set up by the LIC of India in June, 1989 with the objective of mobilizing savings of people especially from rural and semi-urban areas and improving their income ensuring at the same time safety, liquidity and security of their investments. The Fund continued to work towards realizing these objectives. The Assets under Management (AUM) of LIC Nomura MF AMC Ltd. stood at Rs. 6112.16 crores as on 31st March, 2013 with a market share of 0.86%. Mutual Fund Industry‟ AUM as on 31st March, 2013 stood at Rs....   [tags: Investment, Bond, Mutual fund, Hedge fund]

Better Essays
937 words (2.7 pages)

Mutual Fund : A Fund Essay

- A „Mutual Fund‟ is an investment vehicle for investors who pool their savings for investment in diversified portfolio of securities with the aim of attractive yields and appreciation in their value. The investment managers of the funds manage these savings in such a way that the risk is minimized and steady return is ensured. As per Mutual Fund Book, published by Investment Company Institute of the U.S., “A Mutual Fund is a financial service organization that receives money from shareholders, invests it, earns returns on it, attempts to make it grow and agrees to pay the shareholder cash on demand for the current value of his investment.” 90 Securities and Exchange Board of India (Mutual...   [tags: Investment, Mutual fund, Bond, Hedge fund]

Better Essays
1554 words (4.4 pages)

The Behavior Of Mutual Fund Essay

- The Behavior of Mutual Fund Managers and Investors Executive Summary The behaviors of mutual fund managers and the investors have been the subject of study in behavioral finance. The objective of the study is to determine whether there exists any relationship in the behaviors of the two parties to the mutual fund engagement. The study is based on the prospective theory and uses the cross-sectional research design to meet two research purposes. The two research purpose include to investigate whether there is granger causality between the behavior of the fund managers and the behavior of the investors and secondly, to investigate whether the relationship between the two variables can be used t...   [tags: Mutual fund, Investment, Finance, Hedge fund]

Better Essays
709 words (2 pages)

Benefits Of A Mutual Fund Essay

- The investment of money is essential to attaining many goals throughout our lives. Parents are able to carefully save and grow money for their children’s future education, individuals can put away money that will eventually be utilized for the purchase of a new home, yacht or business, and families can save for the golden years of life—retirement. Whatever the end goal may be, there are many investment vehicles that can help get you there. One such vehicle is a mutual fund. Mutual funds, as defined by the SEC, are companies that pool money from many investors and invest that money in stocks, bonds and other securities or assets....   [tags: Mutual fund, Investment, Hedge fund, Open-end fund]

Better Essays
1208 words (3.5 pages)

The Track Records Of Mutual Fund Managers Essay

- A wide grin spread across my face as I proudly announced to my finance professor, “I’ve been saving up for a year, and I’m finally ready to start investing real money in stocks.” Despite my enthusiasm, he surprised me by replying, “Be careful. Speculating is really risky. You should look into indexing.” I took a step back and tried to make sense of the situation. This very professor has been teaching me how to handpick stocks and valuate them based on forecasts, i.e. speculate. Yet the same professor was telling me not to trade based on speculation....   [tags: Investment, Mutual fund, Hedge fund, Index fund]

Better Essays
903 words (2.6 pages)

Essay on Notes On Types Of Mutual Funds

- Types Of Mutual Funds Learn about the different Types of Mutual Funds in this mutual fund tutorial. Which mutual fund is right for you. Asset Allocation Asset allocation refers to the division of your portfolio to different asset classes such as money-market securities, bonds, stocks and their appropriate subcategories. An asset allocation fund follows this principle by holding several asset categories. One of many Types Of Mutual Funds. Balanced Funds These funds invest in a combination of bonds and stocks of various sorts depending on their stated objectives....   [tags: Investment, Bond, Mutual fund, Stock market]

Better Essays
1510 words (4.3 pages)

Evaluating The Performance Of Mutual Funds Essays

- EVALUTATION OF MUTUAL FUNDS: In India, currently, there square measure many of the mutual funds are jointly investment companies operating each within the public sector yet as within the private sector sector. These contend with alternative one another for mobilizing the investment with individual investors and other organizations appetent of inserting their funds with these non-depository financial institution investment company would really like to grasp the comparative performance of every thus on choose the simplest mutual fund or investment company....   [tags: Investment, Mutual fund, Hedge fund]

Better Essays
909 words (2.6 pages)

Mutual Fund Performance in Bull and Bear Market: The Case of Pakistani Mutual Fund

- Appendix 1. Sharpe Model Another method of estimation of mutual fund performance with regard to the risk and return are Sharpe ratio and Treynor. The Sharpe ratio is estimated as return in excess of risk free rate (Treasury Bill Rate) to the standard deviation of portfolio. It is also used to compare the performance of different mutual funds in the mutual funds industry of a economy of country. The requisite model have been borrowed from the study of Sharpe Eleni Thanou (2008) Rp = Average return of the portfolio Rf = Risk free rate, Govt....   [tags: Economics]

Better Essays
823 words (2.4 pages)