Mutual and other Funds

93. What is the scope to expand for the Indian Mutual Fund Indusrty ?

The potential to save is still high in India, considering the gross domestic savings , in comparision with other East Asian Countries . The enormous opportunity prevailing in the economy for the Indian Mutual Fund Industry can be easily gauged from the prevailing interest rates in other savings instruments . The idea of Mutual Funds is not to put in money and earn more in the near future.It is not about the short-term returns of last quarter or last year. It is about long-term investing, moving along the crest and trough in the markets and realizing that the key is the returns over a decade or more . Mutual Fund investing is ideal as a building block for a personal finance (strategic) planning . The gains from such an excercise can be immense . However ,sucess of such a plan will depend on a skilled professional ,called the Fund Manager.

Ans: The enormous opportunity prevailing in the economy for the Indian Mutual Fund Indusrty can be easily gauged from the prevailing interest rates in other saving instruments . Also , considering the gross domestic savings in comparison with other East Asian Countries , the potential to save is still high in India.