Mutual Funds - Concepts, Management, Risks, and Investment Strategies | MODULE D: FINANCIAL PRODUCTS AND SERVICES
Mutual Funds: Concepts, Management, Risks, and Strategies 1. Mutual Funds and their Functions Mutual Funds are investment vehicles that pool money from numerous investors to purchase a diversified portfolio of securities like stocks, bonds, and other assets. Their primary function is to offer small or individual investors access to professionally managed portfolios at relatively low cost. 2. Management of Mutual Funds Mutual funds are managed by Asset Management Companies (AMCs) through professional fund managers. These managers make investment decisions based on market research, economic trends, and the investment objectives of the fund. 3. Evolution of Mutual Funds The first mutual fund was introduced in the 18th century in the Netherlands. In India, mutual funds started with the Unit Trust of India (UTI) in 1963. Since then, the industry has expanded with private sector and foreign players entering the market post-liberalization in 1993. ...