Content area
Full text
Abstract
The concept of MF was Indianized only in the latter part of the twentieth century, in the year 1964, with its roots embedded into Unit Trust of India (UTI). It's a hard fact that an investment in mutual fund is always risky. Risks can be Investor Psychology Risks, Prediction Risks, Choice Risks, and Cost Risks. The main objective of this research paper is to analyze the pattern of investor's behaviour regarding periodic and non-periodic investment and, to analyze the factors which regulate their decision to investments in Mutual Funds?
Keywords:
Mutual Fund, Investor, Investment, Risk Factors, Innovative Marketing Strategies
Mutual fund is a professionally managed type of collective investment scheme that pools the savings of number of Investors who share a common financial goal. This pool of money is Invested in accordance with a stated objective. The joint ownership of the fund is thus "Mutual," i.e. the fund belongs to all investors. The money thus collected is then invested/ traded by the fund manager in capital market Instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciations realized is 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. A Mutual Fund Is an investment tool that allows small investors access to a well-diversified portfolio of equities, bonds and other securities. Each shareholder participates In the gain or loss of the fund. Units are issued and can be redeemed as needed. The funds Net Asset value (NAV) is determined each day. Investors of mutual funds are known as unit holders.
As rightly said by Famous-Entrepreneurs, Todd McFarlane "Do Not Put All Your Eggs Into One Basket. " Diversification reduces the risk because all stocks may not move In the same direction in the same proportion at the same time. Therefore, through Mutual Funds, Investments in securities are spread across a wide cross-section of industries and sectors and, thus, the risk Is reduced. Mutual fund issues units to the investors in accordance with quantum of money...