Analysis the Various Problems and Prospects Associated with the Mutual Funds Industry

Abstract

The Indian mutual funds industry is as old as four decades, but its growth and awareness reached the present levels only during the last five years. At present, Indian mutual fund industry has seen dramatic improvements; both quality wise as well as quantity wise. Because mutual fund have been a significant sources of investment in both government and Corporate Securities in order to fulfill the socio-economic and political objectives. The dawn of liberalization and globalization created a new hope and aspiration in the field of savings and investment particularly in mutual funds industry. Banks and financial institutions play a major role in mobilizing the resources through mutual funds. In addition, the presence of private sector mutual fund creates a vital competition among the mutual funds players. Presently, numerous mutual funds exist, including private and foreign companies. The number of fund houses went on increasing, with many foreign mutual funds setting up funds in India and the industry has witnessed several mergers and acquisitions. In order toregulate the industry and to protect the interest of the investors SEBI has revised various regulations issued on mutual funds, which govern the transparency of operations and disclosure standard of mutual fund industry.