Comparative Study of Mutual Fund and Traditional investment

Commerce

A Mutual Fund is a trust that pools the savings of a number of investors who allocate a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures, government and other securities. The income earned through investments and the capital appreciation realised is 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, Multidimensional professionally managed basket of securities at a relatively low cost. The large amount of money collected by mutual funds from 2004 onwards indicates that they have emerged as an important savings vehicle of investors and with their war chests of money. they also became significant institutional investors in the capital market. The accelerated growth of mutual funds highlights a need for Comparative Analysis of Mutual Fund and Traditional Investment.

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