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Wednesday, January 26, 2011

Mutual fund Industry Project Report

INTRODUCTION OF MUTUAL FUNDS
Mutual funds have become a very popular way to take some of the risk out of investing in individual stocks by investors. Mutual funds are a collection of stocks selected by mutual fund seller and sold to investors as shares in a fund. There are several types of funds that you can invest in. Some of the more popular types are technology funds, growth funds, security funds, and income funds. Mutual funds are very popular because they allow you to invest in a numbers of stocks therefore greatly reducing the risks associated with putting you money in an individual stock.

Mutual funds have become one of the most attractive ways for the average person to invest their 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.
Mutual Funds now represents perhaps the most appropriate opportunity for most investors. It is no wonder that birthplace of mutual funds - the U.S.A.- the fund industry has already overtaken the banking industry. The Indian industry has already started opening up many of the exciting investment opportunities to Indian investors.

Though not insured like banks, mutual funds generally provide more return than the current one to two percent obtainable through banks while still being one of the safest ways to grow your money. There are an endless variety of mutual fund investment choices depending on the degree of risk you feel comfortable with.
Mutual Funds have emerged as professional intermediaries. Besides providing the expertise in stock market investing, these funds allow investing in small amounts and yet holding a diversified portfolio to a limit.

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