Mutual Fund

Nowadays, mutual fund is gaining its popularity, with the emphasis on increase in domestic savings and improvement in deployment of investment through markets, the need and scope for mutual fund operation has increased tremendously.

An ordinary investor who applies for share in a public issue of any company is not assured of any firm allotment. But mutual funds who subscribe to the capital issue made by companies get firm allotment of shares. Mutual fund later sell these shares in the same market and to the Promoters of the company at a much higher price. Hence, mutual funds create the investors confidence.