MUTUAL FUND AS A BETTER INSTRUMENT FOR INVESTMENT
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MUTUAL FUND AS A BETTER INSTRUMENT FOR INVESTMENT


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Introduction of the study:

The study of the consumer preference towards investment in by mutual fund as a better instrument for investment.

MUTUAL FUND

CONCEPT


A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciation realised are shared by its unit holders in proportion to the number of units owned by them. Thus a 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 flow chart below describes broadly the working of a mutual fund:

Mutual Fund

Unicon Provides expert advice to its clients for their investments in equity & debt markets through Mutual Funds.
We help you ascertain your risk profile & guide you with the right product mix which reduce your tax liability increase your savings & enhance your wealth. Whether you have a conservative, medium or aggressive investment risk appetite, our experts would guide you to build a portfolio to optimize the return of interest.
A mutual fund is a managed group of owned securities of several corporations. These corporations receive dividends on the shares that they hold and realize capital gains or losses on their securities traded. Investors purchase shares in the mutual fund as if it was an individual security. After paying operating costs, the earnings (dividends, capital gains or loses) of the mutual fund are distributed to the investors, in proportion to the amount of money invested. Investors hope that a loss on one holding will be made up by a gain on another. Heeding the adage "Don't put all your eggs in one basket" the holders of mutual fund shares are able collectively to gain the advantage by diversifying their investments, which might be beyond their financial means individually.
A mutual fund may be either an open-end or a closed-end fund. An open-end mutual fund does not have a set number of shares; it may be considered as a fluid capital stock. The number of shares changes as investors buys or sell their shares. Investors are able to buy and sell their shares of the company at any time for a market price. However the open-end market price is influenced greatly by the fund managers. On the other hand, closed-end mutual fund has a fixed number of shares and the value of the shares fluctuates with the market.


Definition of Mutual Fund:

A mutual fund is a company that brings together money from many people and invests it in stocks, bonds or other assets. The combined holdings of stocks, bonds or other assets the fund owns are known as its portfolio. Each investor in the fund owns shares, which represent a part of these holdings.

Definition

Investment firm managed by finance professionals that raises its capital by selling its shares (called units) to the public. Mutual fund's capital is invested in a pool (portfolio) of corporate securities, options commodities etc., that match the fund's objectives detailed in its prospectus.


History of Indian Mutual Fund Industry
The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the initiative of the Government of India and Reserve Bank of India. The modern mutual fund was first introduced in Belgium in 1822. This form of investment soon spread to Great Britain and France. Mutual funds became popular in the United States in the 1920s and continue to be popular since the 1930s, especially open-end mutual funds. Mutual funds experienced a period of tremendous growth after World War II, especially in the 1980s and 1990s.


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