Role of Mutual Fund Investment Policies in Kolkata

The Mutual Fund organizations are taking active part in financial inclusiveness and they are promoting investment habit among the investors. Presently there are 37 Asset Management Companies (AMCs) that comprise the mutual fund industry and manage assets over Rs 8075 billion. It is a type of professionally managed collective investment scheme that pools money from many investors to purchase securities.
Before proceeding further on investing, we need to understand that there is a difference between mutual fund agents and advisors. 

Mutual Fund Agent facilitates the mutual fund transaction and provides you after sale/investment services. On the other hand, Mutual Fund Advisor provides advice on investments in mutual fund. He studies your requirement and thus educates on mutual fund, and recommends which mutual fund fits into your requirement, and finally reviews mutual fund investments periodically.  Certain fees need to be paid for hiring an advisor.

A mutual fund agent is expected to provide some services and bring convenience to an investor. 

Mutual fund Investment is a great alternative for investors to invest in the debt and the equity market. It’s suitable for investors who do not have the time or the expertise to track individually the market or trade. It allows investors to diversify their portfolio investment in equity, debt and other instruments. It also significantly mitigates the risk involved in market trading and thus the experts manage investments on behalf of investors. Mutual funds play a vital ROLE in promoting a healthy capital market by providing active support to secondary market and increase liquidity of capital market and finally bring stability in financial market. 

Certain roles of mutual fund can be explained with the help of following points:-

•  Mobilizes Savings:-Mutual funds play an important role in mobilizing savings of millions of investors throughout the country.
• InstrumentOf Investing Money:-Now-a-days bank rates have become very low thus keeping large amount of money in bank does not give higher returns. Clients can always invest in stock market but a common investor is not well informed about the complexities involved in stock market movements so mutual funds play an important role in helping common public to get higher returns.
•   Protection To Small Investors:-A small investor is not safe in share market. There is no such risk in mutual industry. Mutual funds help to reduce the risk of investing in stocks by spreading or diversifying the investments.
• Tax Benefit :-Investors in mutual funds enjoy tax benefits since the dividend received by investors is tax free. Tax is exempted on the income received on units of mutual funds and UTI
• Diversification:-Investment in mutual funds enables investors to spread out and minimize the risks till certain extent. The diversification helps to reduce risk because all the stocks do not decline at same time. Thus investors are very much assured of average income and this is not possible in other sources.
• Multi - Purpose Service:-Mutual funds introduce variety of innovative schemes containing various benefits since it meet the needs of different types of investors in terms of dividend distribution, investment, liquidity etc.
• Boost to Capital Market:-Mutual fund has become a capital market intermediary and thus it bridges the gap between retail investors and capital market. The steady growth of mutual fund industry leads to increased vibrancy of capital market.
• Arrival of Foreign Capital:-. Indian Mutual Fund Industries open offshore funds in various foreign countries and secure safe investment avenues abroad to domestic savings so Mutual funds attract foreign capital.
•  Savings For Retirement And Education:-Various schemes of funds with their tax benefits can help the households to save for the retirements and education of their children.

In today’s world of Investment, uncertainty and riskiness is everywhere and anywhere. Thus greatest contributor to the riskiness in investment is when there is a belief that there is no risk.

People know about these uncertainties, it is not only about unawareness of investors but today they are ready to accept such higher risk & higher uncertainty. They feel that they have to take such risk.
Risk aversion is the crucial parameter in such sane markets. 

Investors should always prefer safety to uncertainty, all other things being constant.

Top Investments done in India: From: onemint.com

S.No.	Investment	Tenure	Expected Return
1	Bank Fixed Deposits	Few days to several years	Usually over 8%
2	Tax Saver Bank Fixed Deposits	5 years or more	 Usually over 8.5%
3	Public Provident Fund	15 years	8.80%
4	NSC IX Issue	10 years	8.90%
5	Senior Citizens Savings Scheme	5 years	9.30%
6	Monthly Income Scheme	5 years	8.50%
7	Tax Free Bonds	They trade on the stock exchange so you can buy or sell any time.	Usually upwards of 8%
8	Fixed Maturity Plans	1 year or more	Not fixed
9	Debt mutual funds	Varying maturities and can be bought and sold anytime.	Not fixed.
10	 Corporate NCDs	Varying maturities	A Higher than fixed deposits.
11	Savings Account	No Maturity	4 – 7%