Synaptic view of growth of Indian Mutual Fund Industry

This paper attempts to review the growth and prospects of Indian Mutual Fund Industry in view of number of schemes in operation, folios existing, Fund houses, Assets under Management and factors contributing and inhibiting its growth and future prospects of Mutual fund Industry. Mutual fund is the pool of the money, based on the trust who invests the savings of a number of investors who shares a common financial goal, like the capital appreciation and dividend earning. The money thus collect is then invested in capital market instruments such as shares, debenture, and foreign market. Investors invest money and get the units as per the unit value which we called as NAV (net assets value). Mutual fund is the most suitable investment for the common man as it offers an opportunity to invest in diversified portfolio management, good research team, professionally managed Indian stock as well as the foreign market, the main aim of the fund manager is to taking the scrip that have under value and future will rising, then fund manager sell out the stock. The researcher emphasized only on secondary data sources. The data has been collected from Textbooks, reports, journals, newspapers and internet sources. Stock market plays a very vital role in developing economy like India. It is becoming a darling of many small investors and also attracting the rural people in recent years. Investors usually perceive that all capital market investment avenues are risky. Based on objectives and risk bearing capacities, investors go for different investment alternatives. Among the various investment possibilities, mutual fund seems to be viable for all kind of investors as it is considered to be a safer mode of investment.