ABSTRACT
A mutual fund is a pool of money mobilised from numerous investors and invested on their behalf in securities market. The returns from such investments, both in terms of dividends and capital appreciation, the net of incidental expenses, accrue to the investors. Each unit of a mutual fund represents the unit holder’s proportionate ownership in the fund’s total holdings. The investors of mutual funds are known as unit holders. The companies that operate the mutual funds are known as asset management companies. Based on the structure, mutual funds are classified as ‘close-ended’ or ‘open ended’. Based on investment objective, mutual funds are classified into growth funds, income funds, balanced funds, and money market funds. Based on special schemes, mutual funds are classified as industry specific funds and index funds.
