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 invested
by the fund manager in different types of securities depending upon the
objective of the scheme. These could range from shares to debentures to
money market instruments. The income earned through these investments
and the capital appreciations realized by the scheme are shared by its
unit holders in proportion to the number of units owned by them (pro
rata). 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 portfolio at a relatively low cost. Anybody with
an investible surplus of as little as a few thousand rupees can invest
in Mutual Funds. Each Mutual Fund scheme has a defined investment
objective and strategy.
Mutual Funds now represent perhaps most appropriate investment
opportunity for most investors. As financial markets become more
sophisticated and complex, investors need a financial intermediary who
provides the required knowledge and professional expertise on successful
investing. As the investor always try to maximize the returns and
minimize the risk. Mutual fund satisfies these requirements by providing
attractive returns with affordable risks.
The basic purpose of the study is to give broad idea on Mutual Funds and
analyze various schemes to highlight the diversified investment that
Mutual Fund offers to its investors. Through this study one can
understand how to invest in Mutual Funds and turn the raw investment
into ripen fruits by taking wise decisions, taking the risk factors into
account.
The Study covers the basic meaning, concept, structure and the
organization of the Mutual Funds. The Study is restricted to explain
only the returns provided by the Mutual Funds from various schemes.