A STUDY ON GROWTH OF INDIAN MUTUAL FUND INDUSTRY

Abstract

Mutual funds have become one of the most widely used financial investment tools in recent years. As a rapidly expanding segment of the Indian financial market, the mutual fund industry offers a diverse range of investment schemes designed to match the varying risk tolerance and return expectations of different investors. Mutual funds provide an accessible platform for small and medium-sized investors to engage in the modern financial system by purchasing units in a professionally managed fund. A mutual fund operates as a trust that pools the savings of numerous investors who share a common financial objective. These pooled funds are invested in equities, debt instruments, money market securities, or a combination of these asset classes. Each investor, referred to as a unit holder, owns a proportionate share of the fund’s portfolio based on their contribution and the fund’s net asset value (NAV). The returns—whether in the form of income, capital gains, or losses are distributed among unit holders in proportion to their holdings, after deducting applicable fees, expenses, and taxes.