Abstract:

ABSTRACT: In recent years, mutual funds have become one of the most favoured financial investment options. The mutual fund sector represents a rapidly expanding component of the Indian financial market. It offers a diverse range of schemes tailored to meet the varying needs and risk-return profiles of different investors. Mutual funds enable small and medium-sized investors to engage in the intricate and dynamic financial landscape. Investors can participate in mutual funds by purchasing units of the fund. A mutual fund operates as a trust, supported by professional investment management, which aggregates and allocates the savings of numerous investors who share a common financial objective. These funds invest in a mix of equities, fixed-income securities, and money-market instruments. Participants in these funds are referred to as unit holders. The securities are managed on behalf of the unit holders, with each investor holding a share or unit of the portfolio in proportion to their investment relative to the fund's net value, thereby granting those rights to both profits and losses. The income generated or losses incurred from these investments, along with any capital gains, is distributed among the unit holders according to their unit ownership, after accounting for relevant expenses, loads, and taxes.

Description:

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