Mutual Funds: Positive and Negative Aspects

The Mutual fund industry is growing at a tremendous pace. A large number of plans have come up from different financial resources. With the Stock markets soaring the investors are attracted towards these schemes. Large segment of the investors are investing in Mutual funds and the main sources of information are the financial advisors followed by advertisements in different media. The Indian investor generally invests over a period of 2 to three years. Also there is a greater tendency to invest in fixed deposits due to the security attached with it. In order to excel and make mutual funds a success, companies still need to create awareness and understand the Psyche of the Indian customer. Mutual funds bring together a group of people and invest their money stocks, bonds and other securities. The advantages of mutual funds are presence of professionals, diversified portfolio, economies of scale, transparency, liquidity.