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Mutual Funds in India

In India also, the Mutual Funds are significant and vital means of collective investment schemes, which are essentially devised for making lucrative and secured investment in the securities market of India. Diverse mutual funds in india, form the bulk part of the investment funds available in India, for investment in profitable securities of booming companies of different sectors of Indian economy. For offering highly promising and bright investment opportunities to investors of India and abroad, there are about 45 mutual funds available in India at present. These mutual fund companies active in India are of both types, government-owned and private ones.

The fourth largest economy of the world, Indian economy with a high and steady GDP growth rate of over 5.5% for decades, offers extensive scope for lucrative business of investment funds to Indian and foreign investors and companies. Today, only about 10% of its population has availed the benefits of mutual funds. In coming future years, more and more people, companies, and other investors will be informed about and interested in making investments in diverse mutual funds.

In order to make the most profitable and secure investments in the best mutual funds in india, the necessary things an investor is required to consider while making investment in any mutual fund scheme, are - main and salient features given on offer document; its registration with SEBI; specified objectives of the mutual fund being dealt with; sponsor’s track record, company’s past performances, outstanding benefits, initial expenses, recurring expenses, time-duration, experiences of key professionals involved, pending litigations of the companies, and the amount and level of risk involved. Diversification across a broad range of industries and economic sectors reduces considerably the risks associated with mutual fund schemes. Also that, the role of banks, post offices, or agents or distributors of mutual funds, is confined only to providing help in distribution and application of the mutual funds schemes. Moreover, the latest performance of any particular mutual fund scheme is displayed by its Net Asset Value (NAV), on the daily basis in case of Open-ended mutual fund schemes and on weekly basis in the case of Close-ended schemes.

Mutual Funds in India - Legal Boundaries

Investments in mutual fund schemes and trading on securities market is inherently concerned with the regulations of the Securities and Exchange Board of India (SEBI) Act, which was passed by the Government of India in the year 1992. The main and most important objectives of SEBI is to support and regulate the well-rounded development of the securities market of India, along with protecting the interests of all investors and companies covered by this market. Other laws, rules, and regulations related with making investments in mutual funds, and doing business in securities market are - the Companies Act of 1956, the Income Tax Act of 1961, business law, intellectual property rights, Foreign Exchange Management Act (FEMA), rule and regulations of all governing and regulating authorities, insurance rules and policies, commercial law, etc.

Though mutual funds offer ample opportunities for making profitable investments in the securities market, these inherently have certain risks, drawbacks, and latent pitfalls. Therefore, comprehensive and mature consideration and deliberation is requisite to be made before making investments in any india mutual funds. Our well-connected service organization can help our visitors in making sound and secure investments in mutual funds, along with providing information about how to invest in mutual funds in india more profitably.

Top Mutual Funds in India

The Unit Trust of India (UTI) established in 1963, was the first mutual fund company in India. Later on, the Government of India allowed the nationalized banks and companies of the private sector, to come up with their own mutual funds in india. Although there are a large number of mutual fund companies in India today, majority of Indian population does not possess adequate and clear understanding about the working of mutual funds, and about the obtainable benefits from investment in these. The other deterrent factor, are the risks involved with dealing in mutual funds. A recent report of Boston Analytics published in March 2010, also confirms these facts about Indian investors. Some of the best mutual funds to invest in india are listed hereunder:

  • Fidelity Equity Fund (G)
  • HDFC Equity/Index Funds
  • Prudential ICICI Dynamic Funds
  • Birla Sun Life MNC Fund (G)
  • UTI Equity Fund (G)
  • Reliance Gold Exchange Traded Fund
  • IDFC Premier Equity
  • SBI Gold ETS
  • Axis Triple Advantage