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Monday, January 10, 2011

Mutual Funds in India

Mutual Funds in India

A mutual fund is one which is an efficiently managed group speculation scheme. It pools in money from a number of investors and invests in bonds, stocks, short term money market instruments and other forms of securities. The mutual fund will also have a fund manager who will do business the mutual money from time to time. The worldwide value of the entire mutual funds sum up to more than $30 trillion.

Saving is a vital part of the financial system of any nation. With the inestimable savings and venture options available, the money is a vaccination. The Indian economic market presents a superfluity of avenues to the investors. Speculation goals vary from one person to another. While some may prioritize security, others give weight to profits. While some plan for their child's education, some others might want to save for urgent situation and retirement.

Although not the best as yet, there has been a fuelled escalation rate in the mutual fund trade that would provide levelheaded options for the commoner to endow his/her savings.

Mutual Funds may be invested in a number of securities. The most regular of these securities are cash instruments (eg. Fixed Deposits), stock and bonds with a number of sub categories. Stock funds can be invested in shares in specific industries like banking, automobiles, real estate, technology or utilities. One can also call them segment funds. Bond funds can vary according to their future risk. For illustration, the high-return junk bonds or speculation grade commercial bonds, type of issuers (e.g., govt. agencies, corporations, or municipalities), or ripeness of bonds both long term as well as short term are vital. Stock and bond funds can be invested in the foreign securities which are domestic funds, foreign securities which are universal funds or foreign securities with global funds.

Various Mutual Funds in India

There are quite a lot of Mutual Fund Schemes in India to meet the necessities like risk forbearance, return prospect and fiscal position. The different Mutual Funds schemes in India are enlisted below:

• Income Schemes

• Sector Specific Schemes

• By Structure

• Open - Ended Schemes

• Interval Schemes

• Close - Ended Schemes

• Balanced Schemes

• Growth Schemes

• Money Market Schemes

• Special Schemes

• Tax Saving Schemes

• Index Schemes

Popular Mutual Funds in India

The following Mutual Funds are very popular in India:

• Tata Mutual Fund

• Reliance Mutual Fund

• LIC mutual Fund

• HDFC Mutual Fund

• JP Morgan

• Merrill Lynch

• ABN Amro Mutual Funds

• State Bank of India Mutual Fund

• Birla Sun Life Mutual Fund

• HSBC Mutual Funds

• UTI Mutual Fund

• Kotak Mahindra Mutual Fund

• Standard Chartered Mutual Fund

• Sahara Mutual Fund

Benefits of Mutual Funds

Mutual funds are tremendously popular form of speculation in India. Many investors go in for Mutual Fund investment because it offers outstanding remuneration to the investors with limited money and time. In addition, risks of loss are relatively less in Mutual Funds as compare to Share Market.


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