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Mutual Fund

The mutual fund industry in India has grown fast in the recent period. The performance is encouraging especially because the emphasis in India has been on individual investors rather in contrast to advanced countries where mutual funds depend largely on institutional investors. In general, it appears that the mutual funds in India have given a good account of themselves so far. Numbers of foreign AMC’s are in the queue to enter the Indian markets like Fidelity Investments, US based assets under management worldwide. Opening of the mutual fund industry to the public sector banks and insurance companies, led to the launching of more and more of new schemes. For example, LICMF has concentrated on funds which includes life and accident cover. GICMF provide home insurance policy. The bank sponsored mutual fund floated regular income, growth and tax incentives schemes. Especially since early 1991 there has been a steady increase in the number of equity oriented growth funds. With the boom of June 1990 and then again 1991 due to the implementation of new economic policies to-wards structure of change the price of securities in stock market appreciated considerably. The finance ministry notified that ELSS is eligible for tax exemption up to Rs. 10,000. This exemption was increased to Rs. 1, 00,000 after introduction of section 80 C in the year 2006. This was done to encourage new as well as existing small investors to invest their hard earned money in stock market through mutual funds. All this shows that there is growth in Mutual Fund Industry.

But there are some short comings in its growth like the most important & noticeable shortcoming is there are approximately 29 mutual funds which are much less than US having more than 800. At present, the investors in India prefer to invest in mutual fund as a substitute of fixed deposits in Banks, About 75 percent of the investors are not willing to invest in mutual funds unless there was a promise of minimum return. Unlimited fund raised by schemes can create severe imbalance in the market. Hence there is a huge scope for expansion.

1) We are glad to inform you we are leading distributor house of NORTH INDIA.

2) We provide you weekly basis portfolio summary as well as meeting to our manager one on one.

 

 
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