The growth of Indian Mutual Fund industry in last two years is notable. As per the industry expert AMFI, the retail investors play a significant role in the area of Asset Under Management. However, according to the reports prepared by the experts of AMFI, the Average Asset Management or AAUM in India at the month of July 2017 was found at Rs 20.42 Lakh Crore.
AMFI is an Indian non-profit organization that works for the growth of the MF or the mutual fund industry of the country. The organization works not only the growth of the market but also takes care of the interest of the investors and mutual funds. AMFI is an association of all the SEBI-registered mutual funds in India as well as its members.
In India, a wide range of mutual funds are present to cater the multiple needs of the investors. In general, all the MFs invest in commodities, equities, money market instruments as well as government and corporate debt. All the types of mutual funds have a predefined investment goal. They track the asset class in which the investors invest them. This is the reason the returns, as well as the risks in mutual funds investments, vary as they depend on the basic nature and pattern of the fund. The performance of the asset class is also a big matter of determining the return and the risk.
There are several types of funds in the Indian mutual fund industry that include growth funds, balanced or hybrid funds, money market funds, income funds, fund of funds, etc. Before investing in any of these, the investors should know about the differences, features, strengths, and drawbacks of all of them. The retail investors should be aware of the nature of these mutual funds and must understand which one will be more profitable as per their investment goals.
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