A Study of Mutual Fund Trends in India after Fourth Phase of Evolution

Author: P. Alekhya, B. Saritha

Abstract:
Mutual funds would be one of the major instruments of wealth creation and wealth saving in the years to come, giving positive results. The mutual fund industry in India has undergone a most successful phase in the last 10 years.. To protect the interest of the investors’ financial innovations always take place in the financial markets. Financial intermediaries play a great role in financial innovation and protection of investors’ interest. Mutual Funds have emerged as an important financial intermediary globally, particularly in India where retail investors represent 97.7% of the 4.70 crore investor accounts. Mutual Funds protect the interest of the small investors not only from the downside market risk through the diversification of risks, but also provide the benefits from the upward market returns. It also plays a key role in the inflow of capital to the financial market. The present paper is study part analyses of the growth trend of the mutual funds industry in India.

Keywords:Financial Innovations, Financial Intermediaries, diversification of risks, downside market risk

DOI:

International Journal of Trade & Commerce (Vol: 5 Issue:2)