Factors Influencing Investors Preference to Mutual Funds with reference to Indiabulls securities Limited

Abstract

A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciations realized are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. Investing in a mutual fund can be a lot easier than buying and selling individual stocks and bonds on your own. Investors can sell their shares when they want. This paper focuses on market share of mutual fund, performance of mutual fund, future potential of mutual fund industry and emerging trends of mutual fund.the two insurance companies LIC and GIC established mutual funds. Securities Exchange Board of India (SEBI) formulated the Mutual Fund (Regulation) 1993, which for the first time established a comprehensive regulatory framework for the mutual fund industry. The maximum number was of the business-class (43%) as most of the respondents were Bank’s customers. 19% were students and 11% of service category as the research was also done in college campus. 14% and 13% being Retired and professionals respectively, as it was an open market operation in High Court area. Hence, most of the professionals are Lawyers and Doctors.