Mutual fund is a very dazzling and attractive domain in market investment for a developing country like India. The aspect of mutual fund has become worthy strategy in the present time (In India, the domain started from 1963). People appreciate this for the sake of the betterment of their investment in market. They found many advantages incorporating simplicity, diversity, versatility and easy accessibility. In India, lack of financial literacy is a remarkable problem among the investors. The strategy of mutual fund comes with a solution for this problem.
Most of the people of India are house centered and feel comfortable to deposit their money in a savings account of any bank rather than investing them in market for security reason. Mutual fund is like a pool for the investors where investors get a secured environment to invest their capital in market.
There are three remarkable features of mutual fund strategy that ensures the security to the investors for their investment:
- Equity fund ensures every individual investor an equal right. The limit of capital is not a crucial fact here. If there is a profit or a loss then everyone will bear the result fairly.
- Fixed income fund brings a successive income for the investors that increases interest among the people in this domain.
- Independent money market fund preserves the freedom of an investor.
A survey shows that in India, the people above 30 are more interested in mutual fund marketing than the youth. But expectedly this proportion is increasing day by day. Some experts says that the assets under mutual fund (AUM) are expected to touch Rs 20 lakh crore sooner as it was Rs 16.93 lakh crore at the end of 2016.
The above discussion shows the glorious and possible development associating mutual fund marketing in India which motivates the investors to invest their capital in market.