Abstract

Mutual funds square measure money intermediaries, that collect the savings of investors & invest them in an exceedingly giant & well heterogeneous portfolio of securities like market instruments, company & government bonds & equity shares of joint stock firms. An investment company may be a pool of common funds endowed by completely different investors, World Health Organization haven't any contact with one another. Mutual funds square measure planned as establishments for providing little investors with avenues of investments within the capital market. The benefits for the investors square measure reduction in risk, skilled management, heterogeneous portfolios, & liquidity of investment & tax advantages. By pooling their assets through mutual funds, investors attain economies of scale. The interests of the investors’ square measure protected by the SEBI, which acts as a watchdog. Mutual funds square measure ruled by the SEBI (Mutual funds) laws, 1993. From its origin the expansion of mutual funds is extremely slow and it took very long years to evolve the trendy day mutual funds.