The Indian financial system has four basic components like Financial Market Women's Renell Wren Jersey , Financial Institutions, Financial Services, Financial Instruments. All these play an important role for smoothing of activities for the transfer of the funds and allocation. The main function the Indian financial system is to provide the efficient services to the capital market. The Indian capital market has been increasing tremendously since the second generation reforms. The first generation reforms started in 1991 the concept of LPG. (Liberalization, Privatization, & Globalization)
Then after 1997 second generation reforms was started, still the it’s going on Women's Ryan Finley Jersey , it includes reforms of industrial investment, reforms of fiscal policy, reforms of ex- imp policy, reforms of public sector, reforms of financial sector, reforms of foreign investment through the institutional investors Women's Germaine Pratt Jersey , reforms banking sectors. The economic development model adopted by India in the post independence era has been characterized by mixed economy with the public sector playing a dominating role and the activities in private industrial sector control measures emaciated form time to time. The last two decades have been a phenomenal expansion in the geographical coverage and the financial spread of our financial system.
The spared of the banking system has been a major factor in promoting financial intermediation in the economy and in the growth of financial savings with progressive liberalization of economic policies, there has been a rapid growth of capital market, money market and financial services industry including merchant banking, leasing and venture capital, leasing, hire purchasing. Consistent with the growth of financial sector and second generation reforms its need to fruition of the financial sector. It also need to providing the efficient service to the investor mostly if the investors are supply small amount Women's Drew Sample Jersey , in that point of view the mutual fund play vital for better service to the small investors. The main vision for the analysis for this study is to scrutinize the performance of five star rated mutual funds, given the weight of risk, return, and assets under management, net assets value, book value and price to earnings ratio.
WHAT IS MUTUAL FUND?
Mutual fund is the pool of the money Women's Jonah Williams Jersey , based on the trust who invests the savings of a number of investors who shares a common financial goal, like the capital appreciation and dividend earning. The money thus collected invested in capital market instruments such as shares, debenture, and foreign market. Investors invest money and get the units as per the unit value which we called as NAV (net assets value). Mutual fund is the most suitable investment for the common man as it offers an opportunity to invest in diversified portfolio management, good research team, professionally managed Indian stock as well as the foreign market Women's Joe Mixon Jersey , the main aim of the fund manager is to taking the scrip that have under value and future will rising, then fund manager sell out the stock. Fund manager concentration on risk – return trade off, where minimize the risk and maximize the return through diversification of the portfolio. The most common features of the mutual fund unit are low cost. The below I mention the how the transactions will done or working with mutual fund.
STRUCTURE OF MUTUAL FUND
Mutual funds have organization structure as per there Security Exchange Board of India guidelines, Security Exchange Board of India specifies authority and responsibility of Trustee and Asset Management Companies. The objective is to control, to promote, to regulate Women's Jessie Bates III Jersey , to protect the investor’s right and efficient trading of units. Operation of Mutual fund start with investors saves their money on mutual fund, than Mutual Fund manager handling the funds and strategic investment on scrip. As per the objectives of particular scheme manager select script. Unit value will become high when fund manager investment policy generates the return on capital market. Unit return depends on fund return and efficient capital market. Also affects international capital market, liquidity and at last economic policy. Below the graph indicates how the process was going on to investors to earn returns. Mutual fund manager having high responsibility inside of return and how to minimize the risk. When fund provided high return with high risk, investors attract to invest more funds for same scheme.
The Mutual fund organization as per the SEBI norms needed for smoothing of activities of the companies and achieving the desired objectives. Transfer agent and custodian play role for dematerialization of the fund and unit holders hold the account statement, but custody of the unit is on particular Asset Management Company. Custodian holds all the fund units on dematerialization form. Sponsor had decided the responsibility of custodian when investor to purchase the fund and to sell the unit. Application forms, transaction slip and other requests received by transfer agent Women's A.J. Green Jersey , middle men between investors and Assets Management Companies.
ORIGIN OF MUTUAL FUNDS IN INDIA:
The history of mutual funds dates backs to 19th century when it was introduced in Europe, in particular, Great Britain. Robert Fleming set up in 1968 the first investment trust called Foreign and Colonial Investment Trust which promised to manage the finances of the moneyed classes of Scotland by spreading the investment over a number of different stocks. This investment trust and other investments trusts which were subsequently set up in Britain and the US, resembled today’s close – ended mutual funds. The first mutual in the U.S., Massachustsettes investor’s Trust, was set up in March 1924.
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19.12.2019 06:41
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