A Comparative Analysis of Performance of Mutual Funds between Private and Public Sector

Abstract

The financial system facilitates the conversion of individual, government, and business savings into investments and consumption. The process of economic development is accompanied by the growth of financial institutions in a corresponding and parallel manner. The emergence of mutual funds, leasing, depository, factoring services, and merchant banks etc. is a significant result of this economic and financial development. Thus, mutual funds serve as a gateway to large corporations that were previously inaccessible to the average investor with his small investments. Mutual funds are a mechanism for pooling resources by issuing units to investors and investing funds in securities based on the objectives stated in the offer document. The income generated by these investments, as well as the capital appreciation realised, are distributed to unit holders in proportion to the number of units owned. The Performance of Indian open-end investment company trade has fully grown at a powerful pace in terms of Assets under Management (AUM). With the fast growth, mutual funds became more and more vital suppliers of debt and equity funds. Indeed, firms with access to the reduced interest rates and elevated share costs of the capital markets have benefited from the surge in mutual fund assets. the quantity of fund homes is additionally increasing annually within the quick growing Indian economy. The study focuses on identifying better collective investments in three different categories while also taking into account various other parameters such as forms, NAV, and risk analysis, among others. The study's goal was to better understand the risks and returns of various mutual funds. The main goal of our project is to help people understand mutual funds better and to promote mutual funds as a viable investment option. This research provides an overview of the return dimension of various schemes and mutual fund companies. The results and interpretation based on the accumulated data will assist investors in making sound investment decisions.