Mutual Fund

MUTUAL FUNDS…AN APPROACH TOWARDS QUALITY

Avik Sinha

PGDBM 2006-08

ITM Business School,

25/26, Institutional Area, Sector 4,

Kharghar,

Navi Mumbai 410210

Maharashtra, India.

Email-id: sinha.avik@gmail.com

Nitin Vijayan

PGDBM 2006-08

ITM Business School,

25/26, Institutional Area, Sector 4,

Kharghar,

Navi Mumbai 410210

Maharashtra, India.

Email-id: nitinvijayan1983@gmail.com

INTRODUCTION

Mutual fund is a company that invests in a diversified portfolio of securities. The investments provide the money for a mutual fund to buy securities such as stocks and bonds. A mutual fund can make money from its securities in two ways: a security can pay dividends or interest to the fund or a security can rise in value. A fund can also lose money and drop in value. The main motto for every Mutual Fund should be the delivery of quality to its stockholders. But how it can be delivered? There are several ways. The motive of this paper is to throw light on those ways by which the quality of a Mutual Fund can be enhanced. Here in this paper we have discussed different ways, the standardization processes, the rules and regulations, the risk mitigating way-outs, the rating of the schemes, the identification of the best guide of the unknown way, and the measures of performance and continuous improvement.

1. GETTING STARTED...

Mutual Funds are open-end funds that are not listed for trading on a stock exchange and are issued by companies which use their capital to invest in other companies. Professionally managed investments in a group of stocks and/or bonds that are selected and are diversified, are to meet the stated objective of the fund.

Before purchasing any fund one should: [1]

o Know the types available.

o Read the prospectus.

o Study the fee table.

o Consider the fund’s objective and concerned investment objectives.

o Consider the other investments in hand.

o Know its...