The one investment vehicle that has truly come of age in India in the past decade is mutual funds. Today, the mutual fund industry in the country manages around Rs 675864 crores (As of June, 2011) of assets, a large part of which comes from retail investors. And this amount is invested not just in equities, but also in the entire gamut of debt instruments. Mutual funds have emerged as a proxy for investing in avenues that are out of reach of most retail investors, particularly government securities and money market instruments. Specialization is the order of the day, be it with regard to a scheme s investment objective or its targeted investment universe. Given the plethora of options on hand and the hard-sell adopted by mutual funds lying for a piece of your savings, finding the right scheme can sometimes seem a bit daunting. Mind you, it s not just about going with the fund that gives you the highest returns. It s also about managing risk finding funds that suit your risk appetite and investment needs. So, how can retail investor, create wealth for himself by investing through mutual funds? To answer that, we need to get down to brass tacks what exactly is a mutual fund? Very simply, a mutual fund is an investment vehicle that pools in the money s of several investors, and collectively invests this amount in either the equity market or the debt market, or both, depending upon the fund s objective. This means you can access either the equity or the debt market, or both, without investing directly in equity or debt. India s is growing at a fast pace. It has become one of the most preferred destinations in the world. Indian markets provide growth opportunities, which are unlikely to be matched by the other mature markets around the world. Project explains the mutual fund industry and its evolution in India.
doc_494547505.docx
doc_494547505.docx