Customers preference towards mutual fund
In the other case, Individual Stock investment is done directly by the investors who are in most cases common men who don't have much knowledge about the stock and bond market. The investors can any time sell their mutual fund shares to get back the money invested in mutual funds.
The interesting thing is that mutual funds are the most misunderstood financial products in India. Their liquidity depends on the efficiency and understanding of the engaged broker.
Table 1. It implies that the capitalization of the fund is constantly changing as investors sell or buy their shares.
A Study on differences and characteristics of public-sector and private- sector sponsored mutual funds and their extent of diversification in the portfolio of securities and comparison of their performance using traditional investment measures.
No intermediaries are required. A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. But, most of the people agree about the fact, that mutual funds hold some important benefits over and above Individual Stocks.
Obviously, the higher the expected returns, the higher the potential risk of the investment. Operational classification: - Operational classification highlights the two main types of schemes, i.
The core concept of mutual funds is to Diversify Investment in order to lower the risk of investing.
Research articles on mutual funds in india pdf
But, most of the people agree about the fact, that mutual funds hold some important benefits over and above Individual Stocks. Agarwal, D. To know the level of satisfaction among investors regarding mutual fund. As a result, Investors are increasingly concerned about fund selection and demanding detailed mutual fund information and investment advice. The present study was conducted in Cochin city of the Kerala state in India, regarding the perception of Mutual Fund investors. Such funds divide their portfolio in common stocks and bonds in a way to achieve the desired objectives. But, every time a person invests in mutual fund, he unavoidably carries the risk of losing money. Such funds invest in growth-oriented securities, which can appreciate through the expansion production facilities in long run. This is because, if at a time, if prices of some stocks are declining, deceasing the Value of Investment, prices of some other stocks and bonds may tend to rise and in this way the loss of the mutual fund is offset by the strength of the stocks whose prices are rising. This paper presents an outlook to understand the perception of mutual fund investors and gives a broad outlook on the research problem as well as the preference of Mutual Funds as an investment option among the investors. Table 1. Unlike open-ended funds, these funds have fixed capitalization, i.
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