Mutual Fund - Indian Market Scenario

Market of Mutual Funds

Mutual funds – it is the pool of money, collected from investors, and is invested according to the certain investment objectives.

Types of mutual funds

1.By structure: -

Open ended funds
Close ended fund
Interval funds

2.By investment objective: -

Growth funds.
Income funds
Balance funds
Money market funds
Load funds
Low load funds

3.Other schemes: -

Tax-saving schemes.

4.Special schemes.

Industry specific schemes
Index schemes
Sectoral schemes

Important characteristics of mutual funds: -

1. It belongs to the investors
2. It is managed by investment professionals
3. It is invested in a portfolio of marketable investments
4. The investors share in fund is denominated by unit’s
5. The investment portfolio is created according to the stated investment objective

Advantages of mutual funds: -

Portfolio diversification
Professional management
Reduction in risk
Reduction of transaction cost
Convenience and flexibility
Easy to buy and sell
Tax benefits
Low costs
Convenient administration

Limitations of mutual funds: -

1. Subject to market risks
2. No assurance or guarantee of return
3. The NAV of the units can fluctuate a lot
4. Past performance does not indicate future performance
5. The sponsors are not responsible for any loss
6. Investors are not been offered any guaranteed returns

Marketing strategies adopted by the mutual funds.

1.Direct marketing: -

Direct mail
Advertising in newspapers and magazines
Hoardings and banners

2.Selling through intermediaries:-

Regular meetings with distributors.

3.Joint calls

Meetings with HNI’s.

Emerging trends and innovations in mutual funds

1. Systematic investment plan.
2. Systematic withdrawal plan.
3. Triggers.

Findings of the Study

1. The Indian investor is highly risk averse.
2. He looks for safety and reasonable returns.
3. He understands more by emotions and sentiments than by a quantitative comparison.
4. The typical Indian investor looks for the safety of funds, reasonable returns and liquidity.
5. He will be happy if assured a rate of reasonable return on his investment.
6. They don’t have the right knowledge of market i.e., entry & exit time.
7. They don’t have the latest information & technical expertise of timing the market.
8. They need to be educated regarding various investment avenues available to them &the risk & returns associated with them.


1. Expansion of the market for various investment instruments is needed.

2. Create awareness among investors regarding the benefits of investing in mutual fund.

3. Small cities should be targeted for the awareness programmes & promotional activities.

4. Today’s investors need technical advice from experts, timely delivery of documents cheques etc.

5. The AMC,s should be positioned as financial advisors ¬ mere as investment companies.

6. The perception of investors regarding mutual funds needs to be changed.

Check List To Help Extract The Most From Mutual Funds

1. Draw up your asset allocation.
2. Identify funds that fall into your buy list.
3. Read the offer document carefully.
4. Match your investment objectives.
5. Checkout past performance.
6. Think hard about investing in sector funds.
7. Does the funds change funds manager often
8. Customer size.
9. Monitor regularly and review.
10. Don’t rush in picking funds, think first.
11. Don’t put all your eggs in one basket.
12. Keep track of your investment.
13. Know when to sell your mutual funds.


1. Saving is an integral part of every individual.

2. The investors looks for three basic things, they are – growth of funds invested, liquidity, tax benefits, and safety

3. Mutual funds satisfies all the above investors needs.
4. The future of Indian mutual fund market depends to the large extent on the various initiatives taken and the policies framed by the govt and the regulators towards the development of this market, but one thing is sure that in future mutual funds are here to stay, sustain and grow.

Related Articles

Investing In A Mutual Fund

In this article I will provide information regarding mutual funds, the advantages and disadvantages of investing in mutual funds, what factors you need to check before investing in mutual fund and some terminologies that you need to know regarding mutual funds.

Basic Idea Of Mutual Fund

Mutual fund is one of investment idea to invest. In this article we see basic idea before mutual fund. This is explained with the my language.This is one of best investment with low risk and high return on investment.

Know About Association Of Mutual Fund In India (AMFI)

This article is focused on Association of Mutual Fund in Indian (AMFI), a non-profit organization. It covers the importance and functions of AMFI and how it is helpful for the investors. The objectives of AMFI are described here and about some of the major Indian Asset Management companies which are the part of AMFI are also discussed in this article. It also covers all the basic information which are all must and should know by all Mutual Fund investors. Finally it ends with the AMFI contact information.

What are the benefits of sectoral mutual funds?

What is a sectoral mutual funds? How to get in to that and what are the benefits of sectoral mutual funds? Benefits and risk involved in sectoral mutual funds? What strategy should you follow before investing in sectoral mutual funds to face less diversified and less volatility

Some Of The Best Investment Methods To Know

Indian financial condition has developed much. Different methods are available for the investment of money.We are really become confuse if we made an attempt to select the best method among them. This article introduces some best methods for the investment of money. It also gives some valuable regulations which one should keep in before selecting the mode of investment.

More articles: Mutual fund


No responses found. Be the first to comment...

  • Do not include your name, "with regards" etc in the comment. Write detailed comment, relevant to the topic.
  • No HTML formatting and links to other web sites are allowed.
  • This is a strictly moderated site. Absolutely no spam allowed.
  • Name: