STUDY OF RISK AND RETURN OF MUTUAL FUNDS
Submitted by
MERAJ ALI 22GSOB2010780
IN BRANCH OF STUDY
SCHOOL OF BUSINESS
Under the Supervision of
Mr. Honey Kanojia
Assistant Professor Galgotias University
1. INTRODUCTION
There are many avenues in financial market. An Investor can invest in Bank deposit, corporate debenture and bonds which has law risk with low return. He may also Investor in stock of company which has high risk with hight return.
Investors look for safer investment avenues and want to maximize their returns in according to their risk. Whereas people also tries to invest money as early as possible so that the money will grow accordingly in his lifetime.
Choose a good investing option is very critical because a balance is required to be maintained between the risks and returns involved in investment. Return is inspiring force and principal reward in the investment process. One of the essential, reason because ofwhich one needs to invest fairly is to meet the cost of inflation. Inflation is the rate at which the cost of living increases at that time.
A mutual fund is an expertly overseen company of collective investments that swimming pools money from numerous buyers and puts it in stocks, bonds, momentary money market instruments, as nicely as distinct securities.
Mutual money is emerging as helpful instrument for a large scope of speculators, from people looking to put some thing aside for retirement to subtle socialites concentrated on defending their belongings and businesspeople to make wealth. Mutual Fund is a trust that pools the reserve funds of various buyers who share a typical financial objective.
Anyone with an investible overflow of as little as two or three thousand rupees can put resources into mutual fund devices as indicated by means of their expressed objective and strategy.
Mutual Fund Company pools money from a gathering of individuals with normal hypothesis targets to buy securities, for example, stocks, bonds, money market instruments, a mixture of these instruments, or significantly unique belongings so as to acquire the reward of enhancement and expertly oversaw container of protections at a reasonably ease. In a mutual fund, the fund manager, who is likewise excellent as the portfolio manager, trades the funds underlying securities, acknowledging capital positive factors or losses, and gathers the dividend or hobby income.
