THE DEVELOPMENT OF MUTUAL FUND INDUSTRY IN INDIA

The purpose of this article is to present the attributes of mutual fund industry in India, its development since inception with UTI, entry of public sector, private sector and foreign enterprise, various schemes offered by companies especially started to meet small investor's needs. The article also explains the growth aspects of the mutual fund industry along with some guidelines that would result in safe investment and reasonable return. The main cause of underdevelopment of a nation is its poor capital formation. Mobilization of savings is the backbone of sound financial system and for the development of the economy. The reforms have made the Indian financial system very strong. Mutual fund is one of the emerging financial instruments for small and retail investor and in developing countries like India small investment makes major part of capital. The objective of the study is to reveal the mutual fund industry from its inception to current position. The data used for the study is secondary in nature. To analyze the data various statistical tools like average, percentage and CAGR were used.