Mutual fund plan, which gives the best returns

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Mutual fund plan, which gives the best returns

Journal Title: International Journal of Management, IT and Engineering - Year 2017, Vol 7, Issue 11

Abstract

Mutual funds now represent perhaps the most appropriate investment opportunity for investors. Financial markets become more sophisticated. Investors need a financial intermediary which provides the required knowledge and professional expertise on successful investing. It is no wonder then that in the birthplace of mutual funds- the USA- the fund industry has already overtaken the banking industry, more funds being under mutual fund management than deposited with banks. The Indian mutual fund industry has started opening up many of the exciting investment opportunities to Indian investors. Despite the expected continuing growth in the industry, mutual funds are still a new financial intermediary in India. Hence, it is important that the investors, the mutual fund agents, distributors, the investment advisors and even the fund employees acquire better knowledge of what mutual funds re, what they can do for investors and what they cannot, and how they function differently from other intermediaries such as the banks. Mutual funds serve as a link between the saving public and the capital markets, as they mobilize savings from investors and bring them to borrowers in the capital markets. By the very nature of their activities, and by virtue of being knowledgeable and informed investors, they influence the stock markets and play an active role in promoting good corporate governance, investor protection and the health of capital markets. Mutual funds have imparted much needed liquidity into the financial system and challenged the hitherto dominant role of banking and financial institutions in the capital markets.

Authors and Affiliations

K. B. Sarala And Dr. R. Seetha Rama Rao

Keywords

EP ID EP18913
DOI -
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