AN OVER VIEW OF MUTUAL FUNDS IN INDIA

Mutual fund is a financial organization, which collects the small savings from general public with the aim of investing it in the securities. The profit resulting from the investment is distributed among the contributors, who are called as unit holders. Mutual funds are based on the principle of “Trusteeship”, which means working on behalf of someone else for the benefit of interested party and providing a protection to such party. In recent times, the concept of mutual funds gained momentum because of the increasing complexities of capital market. It is difficult for an individual investor to create and manage his portfolio of investment due to the lack of knowledge, expertise and experience about stock market. Mutual funds provide the benefit of diversification to unit holders as a result of which risk of investment gets minimized. Present paper is a modest attempt to study the growth of mutual funds in India and to analyze the trends in sector-wise and scheme-wise resource mobilization by mutual fund industry. Secondary has been collected from various sources and analyzed by using appropriate statistical techniques.