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.”
Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 define „Mutual funds‟ as “A fund established in the form of a trust to raise money through the sale of units to the public or a section of the public under one or more schemes for investing in securities, including money market instruments.”
So, a mutual fund is a special type of institution, a trust or an investment company which acts as an investment intermediary and channelizes the savings of large number of people to the corporate securities in such a way that investors get steady returns, capital appreciation and a low risk.
Mutual Funds (MF‟s) are institutions who mobilize resources from the small investors. The savings of small investors are, therefore, utilized to purchase the securities of companies and corporations. It is, thus, an institutional arrangement for resource mobilization from small, marginal and house hold sector investors, for the investment in stock market. Thus, mutual fund is an investment vehicle through which, the investors pool their funds under the direction of an investment mana...
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...stments Pte. Ltd. on 18th January, 2011 and thus becoming LIC NOMURA Mutual Fund with its investment manager, renamed as LIC Nomura Mutual Fund Asset Management Company Ltd. (AMC) and trustee as LIC Nomura Mutual Fund Trustee Company Pvt. Ltd. where in Nomura acquired 35% stake.
Thus, for improvement in current earnings of an individual in order to improve one‟s standard of living, the LIC Mutual Fund offers regular income and growth under different mutual fund schemes. These schemes can be generally classified into various groups, viz., Income Schemes, Income and Growth Schemes, Growth Schemes, Tax Saving Schemes, Insurance Linked Schemes and Special Schemes for children .Therefore, with the inauguration of the LIC Mutual Fund, LIC of India has provided economic security for individuals.
2.10 EVALUATION OF PERFORMANCE OF LIFE INSURANCE BUSINESS OF LIC
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