Role of Mutual Funds in Indian Economy

Role of Mutual Funds in Indian Economy

Author Name : Dr. Barun Kumar Das

ABSTRACT:  In India the origin of Mutual Funds industry can be observed since the enactment of UTI (Unit Trust of India) Act, 1963. Due to various reasons the Unit Trust of India has enjoyed the monopoly in the mutual funds industry and it still maintains its prominent position. Mutual Fund Industry in India has grown tremendous over the last two decades after the entry of public sector banks, insurance companies (both private and foreign players) into the industry. Today investors largely depend on Mutual Fund for investment purpose as it ensures growth. Compare to investment in shares, risk of investment in mutual funds is low. Hence it is attractive to the investors those who always avoid risk.