Mutual Fund industry in India: A Scenario

The Mutual Fund Industry is a fast-growing sector in India. Mutual funds in India have become one of the most attractive ways for the average person to invest their surplus money. A mutual fund pools resources from thousands of investors and then diversifies its investment into many different holdings such as stocks, bonds, or government securities in order to provide high relative safety and returns. The income earned through these investments and the capital appreciation realized is shared by its unit holders in proportion to the number of units owned by them. Thus, a mutual fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. The mutual fund industry in India was started in the year 1963 with the formation of Unit Trust of India. This paper explores the growth, Structure of Mutual Funds in India. It also states the several phases and expansion of the mutual fund industry across decades and current scenario of mutual fund industry in India.