MBA Alumni | MBA Students | MBA Aspirants | MBA Forums
--- MBA Home ---

CoolAvenues.com

offers
Advertising
Services

on the web  
 

Home     |    MBA Jobs      |     Knowledge Zone      |     Seminars      |     Placement Report      |     Admission Alert       |     café     |     Search

Finance Management | "Invest in Mutual Funds and Reap Rich Dividends"

Finance @ Knowledge Zone

 Home

 Knowledge Zone Home

 General Management

 Finance

 Marketing

 Human Resource

 System

 Operations

 Knowledge Seminar

 MBA Forums
 Search
 Join e-Communities
 Be a CoolAssociate
 Give Suggestions

 Company Search
 
 

Subscribe:
Seminar & MDP Alert
   To keep yourself updated with the latest Seminars & MDP happenings in the country, join Knowledge Seminar& MDP mailing lists.


Latest Management Discussion on CoolAvenues Forums



Invest in Mutual Funds and Reap Rich Dividends

- by R. Sethumadhavan *

Page - 1

Abstract

There are various investment alternatives available to investors. Mutual funds also offer good investment opportunities to the investors. The investors should compare the risks and
expected yields after adjustment of tax on various instruments while taking investment decisions. The investors may seek advice from experts and consultants while making investment decisions. Mutual funds industry is one of the fastest growing industry in India and even foreign institutions invest in various schemes to make profit in a smart way. The objective of this study is to make the investors aware of functioning of mutual funds and an attempt has been made to provide information for taking investment decisions in mutual funds.

Mutual Fund

Mutual fund is a mechanism for pooling the resources by issuing units to the investors and investing funds in securities in accordance with objectives as disclosed in offer document. Investments in securities are spread across a wide cross-section of industries and sectors and, thus, the risk is reduced. Diversification reduces the risk because all stocks may not move in the same direction in the same proportion at the same time. Mutual fund issues units to the investors in accordance with quantum of money invested by them. Investors of mutual funds are known as unit holders. The profits or losses are shared by the investors in proportion to their investments. The mutual funds normally come out with a number of schemes with different investment objectives which are launched from time to time. A mutual fund is required to be registered with Securities & Exchange Board of India (SEBI), which regulates securities markets before it can collect funds from the public.

Setting-up of Mutual Fund

A mutual fund is set-up in the form of a trust, which has sponsors, trustees, Asset Management Company (AMC) and custodian. The trust is established by a sponsor or more than one sponsor who is like a promoter of a company. The trustees of the mutual fund hold its property for the benefit of the unit holders. Asset Management Company (AMC) approved by SEBI manages the funds by making investments in various types of securities. Custodian, who is registered with SEBI, holds the securities of various schemes of the fund in its custody. The trustees are vested with the general power of superintendence and direction over AMC. They monitor the performance and compliance of SEBI Regulations by the mutual fund.

Next


* Contributed by: -
R. Sethumadhavan,
M.A, MBA, M.Phil, Ph.D.,
Faculty - Management Studies,
Tamilnadu College of Engineering, Coimbatore.
Article posted on October 4, 2008.


Post Your Comments       |       E-mail to Friend       |       Want to Contribute

Send this E-mail this Article

 

MBA Jobs
MBA Preparation
B-Schools
MBA Forums
About CoolAvenues
Senior Mgmt Jobs CAT / MAT/ CET Dean talk CAT Preparation Post a Job
Finance Jobs Admission Alert B-School Profile Executive MBA Advertise with Us
Marketing Jobs MBA Insider B-School Diary Career Help Contact us
HR MBA Jobs MBA Admission Process Summer GMAT Privacy
Operations MBA Jobs English Preparation MBA News Companies Copyrights
IT MBA Jobs MBA Abroad MBA Events B-Schools About CoolAenues
Consulting MBA Jobs CAT / MAT / CET test papers MBA Placements Summer Guidance
Resume Design Tips MBA in India Summers Guide Classifieds

© All Copyrights exclusive with Zebra Networks
Part or full of the contents can not be published, copied or reproduced
in any form without the prior written exclusive permission of Zebra Networks. Pls refer to CoolAvenues Copyright section.