Funds Mobilization towards Mutual Fund in India

The Indian financial system foster savings among the public and channels them to their most efficient use through financial institutions or intermediaries operating in the money and capital markets segments. The financial intermediaries have to play important role in the development and growth of capital markets in India. Most of the developed countries the mutual fund cult has been catching on in India. It is easy and less costly for investors to satisfy their need for capital growth and income generation. Apart from this, a mutual fund brings the benefit of diversification and money management to the individual investors, providing an opportunity for financial success that was once available only to a select few. Mutual funds are professionally managed asset management companies. The performance of mutual funds depends on the ability of fund managers to choose the right kind of securities with their superior knowledge of the market. Research and analysis experts employed with mutual funds help and managers with details on market movements and expected trends so that they can initiate suitable strategies to improve the performance of the fund. This paper will focus on saving pattern of investors, investment avenues, awareness about various investments and preference towards mutual funds and their different types. A Mutual Fund (MF) is an investment company or a trust that pools the resources of thousands of unit holders and invests on behalf of them in security markets. MFs are an investment vehicle for the investors to enjoy the expert management, skills of professional and maximize the return with an accepted risk, an individual investor shifting from the direct investment in equities to the MF route.