March 22, 2012

Mutual funds

                   One can describe a mutual fund as a trust that pools in investments and funds from huge number of investors who have a common financial aim. Mutual funds issue units to the investors, which stand for equitable rights in the assets of the mutual fund. There are a number of schemes and all of them have different character and objectives. For example, in the wake of the boom in the software sector ,the Indian mutual fund industry launched a number of sector specific schemes  that entailed only software stocks. Of course, most of them are languishing now with net asset value that are less than the average value of the units.But one should remember that these schemes are basically meant for investors who are looking for high returns.


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