Study of the evolution of the Indian mutual fund industry, its problems and prediction of possible future trends in the industry

Abstract

The Indian capital market has been increasing tremendously during last few years. With the reforms of economy, reforms of industrial policy, reforms of public sector and reforms of financial sector, the economy has been opened up and many developments have been taking place in the Indian money market and capital market. In order to help the small investors, mutual fund industry has come to occupy an important place. The aim of this paper is to give a brief introduction of the mutual fund industry, examine the growth of the Indian industry over the last decade, the maladies that are affecting it and where we see the industry move in the coming years. We have in our research spoken to various fund managers, besides relying on secondary data. The fund managers, as well as some fund investors that we spoke to, besides secondary data, were our main source for estimating where the industry is moving.