The role of mutual fund in India

Pages: 603-607
Rupinder Kaur (Research Scholar, Monad University, Hapur, UP)

Mutual Fund is considered as an institutional arrangement wherein savings of millions of investors are pooled together for investment in a diversified portfolio of securities to spread risk and to ensure steady return. Mutual Funds provide an option of investing without getting lost in these complexities. Fund managers are paid to understand these issues and the Asset Management Company invests in further research in this field. Throughout the world, Mutual Funds are considered as a reliable instrument.. Mutual Funds mobilize the saving, particularly from the small & Household sectors for investment in securities and stocks. Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. The present paper review history, concept, pros &cons of mutual fund in India.