Mutual fund investments are an important source of income including both government and corporate securities. The investment procedure in the country is going on for decades. In the monopoly of the state UTI is the most important player with funds exceeding US$10. The insurance companies owned by the state governments also have a portfolio of the stocks.
At present in our country there are number private and foreign mutual fund investment companies. The mutual funds are also established by the nationalized banks. The participation of the foreign countries in the investment of India is permitted according to the case specific basis. This is also applicable for the asset management companies.
Different features of the Mutual Funds Investments:
• The mutual funds are allowed to apply the firm allotment in the public issues.
• SEBI acts upon the implementation of mutual funds and it commands all MFs to be recognized as trusts under the Indian Trusts Act.
• The fund management activity will be carried on from a different asset management company which is to be known as AMC. The minimum amount of AMC is Rs. 50 million to take actions as a manager in any other different fund.
• Mutual funds can be punished for non remittals including non-registration and malfunction to survey rules set by the AMCs
• Mutual funds dealing exclusively with the instruments of money market have to be registered under RBI. And the other schemes are to be registered with SEBI.
Mutual funds investment options are of various types for the common people. They are mainly:
Banks, post office schemes, company fixed deposits, etc. The other features of Mutual Funds investments are; diversification, professional management, potential returns, liquidity etc.