Finance @ Knowledge Zone



Investment Models in the Mutual Fund Industry

- by Sarthak Kumar Rath *

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Part - II

Investment Models in the Mutual Fund Industry

Interestingly today, investors have large varieties of mutual funds to choose from as against the no. of companies issuing these mutual funds. Thereby investors lose their way amongst the maze of the wide array of funds and eventually end up putting their eggs in the wrong basket of funds. It is therefore pertinent for the investor to address the issue of how to go about choosing the right kind of fund to suit his risk and return appetite. Towards this end, the investor should match his investment objective with that of the fund. A deep and through knowledge and understanding of the various categories of funds being offered by the AMCs would go a long way in aiding the decision making process.

Mutual funds can be classified on the basis of their maturity period, investment objective, the type of investors, the load and the market orientation. (Refer Table 1)

Table 1: Mutual Funds - A Snapshot

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* Contributed by -
Sarthak Kumar Rath,
PGDBA (Finance), ICFAI Business School,
Currently working as Associate Consultant at ICIT Software Center Pvt. Ltd.