An Analytical Study of Adopted Investment Policy and Performance Evaluation of Selected Schemes of Mutual Funds for the Period 2009 To 2013

Abstract

The motivation for this research has come from the gap identified in the literature review and from understanding need of financial system. India has only 0.48% contribution worldwide in Mutual Fund Market. (Source: SEBI) In number very few studies are available in India on Mutual Fund where as many studies are there on Mutual Fund in other countries like USA, UK, and China where Mutual Fund is common phenomena of Investors and for corporate World. newlineThe financial system is the most important institutional and functional vehicle for economic transformation. There are four main constituents of financial systems which are Financial Services, Financial Instruments, Financial Markets and Financial Institutions. Mutual Fund is one of the key Financial Instrument for creating wealth to the investors and growth of the country. newlineMutual fund has become a main part of the stock market and is contributing large corpus to the stock market. The ideal investment policy and sustainability in the performance has become the important goals for the fund managers. The performance of the funds depends on the investment policy decisions taken by the fund managers keeping in view the various sectors, stocks and changing market sentiments. It is fact that everybody want to be secure about their future. Financial security and stability is needed by the individual. People are constantly chasing for high income from diverse sources of income. The Investment Policy and performance of the Mutual Funds has been of long-standing concern to finance fraternity. It also widely acknowledges that if we cannot measures, we cannot manage this study measures the adopted investment policy and evaluates performance in order to manage Mutual Fund appropriately. Performance is outcome of investment policy. This Study recognized above fact as research gap and the researcher has preferred this topic by selecting various schemes of Mutual Fund to accomplish the research gap. newline