Essay - Analysis of the Mutual Funds Industry in India Abstract Mutual...

Analysis of the Mutual Funds Industry in India

Abstract mutual fund is simply a pool ***** money th*****t ***** invested by a manager with the goal of increasing the value of each share of the fund for its investors. A mutual ***** provides investors ***** diversification ***** their portfolios, thereby spreading risk and providing the convenience of buying and selling shares in the fund on any business day. More and more average ***** are seeking out investment opportunities in mutual *****s, and the research shows that such funds exist for virtually ***** investment goal or objective. This study provides a critical evaluation of the mutual ***** industry in general and ***** use of mutual funds in India in particular. ***** comparison of Indian ********** options that evaluates domestic versus overseas investments is provided, as well as a review ***** typical company strategies ***** an analys***** of the riskiness of these respective investments.

Chapter 1: Introduction

***** of the Problem

Hypo*****sis

Rationale

***** of Key Terms

Chapter 2: Literature Review

***** 3: Methodology

Statistical Analysis

Data Collection

Subject Population

Chapter 4: Data *****

Chapter 5: Summary, Conclusions and Recommendations

List of Tables

***** 1.

***** ***** Figures

An Analysis of the Mutual Funds ***** in India To*****

Chapter One:

Introduction ***** fund is simply a pool of money ***** ***** invested by ***** manager with ***** goal ***** ***** the ***** of ***** share of the fund ***** its investors. A mutual fund provides investors with diversification ***** their portfolios, thereby spreading risk and providing the ***** of ***** and selling shares in the fund on any bus*****ess day (What Are Mutual *****?, 2005). These are some of the more compelling reasons why more ***** are seeking ***** investment opportunities through mutual ********** than directly in the stock, bond or money markets to***** (What Are Mutual Funds?, 2005).

Statement of ***** Problem

*****, inves*****rs as a group tend to earn less because the market return is inevitably reduced by ***** costs of investing; moreover, in the mutual fund industry, the range of investment costs is extremely broad (Bogle, 1999). In India, while numerous banks and other financial institutions provide conventional finance to business firms, r*****k financing of the type and scale practiced in countries such as the United States is not yet significantly widespread. Given ***** conservative lending practices ***** the ***** institutions, new entrepreneurs find it difficult to obtain project financing. There is a cle*****r need for venture cap*****al to finance technological ***** in such areas as information technology and software, electronics ***** communication, biotechnology healthcare and medicine, chemicals, consumer products, and non-conventional energy (Verma 1997).

Venture capital activity in ***** was formalized ***** 1988 when the central government announced guidelines for the establishment ***** functioning of the *****. Venture ***** companies sprang up, several sponsored ***** government development financial institutions. With significant economic liberalization policies introduced by the ***** government in 1991, more ***** and *****eign ***** capital companies began operations. In 1996, the central government ********** new *****