-
78. Explain the role of Mutual Funds in the economy.
Mutual Funds have the potential for organic growth.Participants in this market must become the opportunity seeking missiles exploring path-breaking initiatives to lead the revolution. Mutual Funds (MFs) play an extremely crucial role in an economy.They are the vehicles for mobilization and channelization of Funds towards the securities market, which have become barometer of an economic health . In India, MFs have shown continuous improvement in terms of the quantum under their management over the last couple of years. Total Net Assets of the MFs have grown from Rs.68,193.08 crore in 1998-99 to Rs.121,039.70 crore as on August 31,2003. Along with a host of advantages in terms of resources poolings, MFs impart required expertise and technical capabilities to the investors . Mutual Funds also diversify of risk among the investors . They provide a structured approach to investments, which is expected to offer investors a return better than the market return. Having seen good growth in the past, now , participants in the opportunity zone seem to be struggling to find the path to growth.
Ans; Mutual Funds (MFs) play an extremely crucial role in an economy. They are the vehicles for mobilization and channelization of Funds towards the securities market, which have become barometer of an economic health. In India, MFs have shown continuous improvement in terms of the quantum under their management over the last couple of years. Total Net Assets of the MFs have grown from Rs.68,193.08 crore in 1998-99 to Rs.121039.70 crores as on August 31,2003.