Working of Mutual Funds and legal safegaurd for investors in India

Mutual funds are an active investment option in India, as in most of the developed and developing countries of the world. The facts, case laws , trends, rules and regulations mentioned authentic sources, with authors comments , wherever required, with good KNOWLEDGE of the subject. Judgements of Court cases have been given in brief as they help in understanding the Judicial question under consideration. The book has focussed on the legal aspects of investment in mutual funds , bringing out the risks and safeguards provisions as existing in India and the Judicial courts in strengthening the faith of the in the mechanism of dispute resolution and safety of their investments in mutual funds. We believe that investing savings in various investments, especially the mutual funds is a wise decision rather than keeping the savings idle in hand or in low return bank accounts, For , [1], Kautilya advises, “Wealth has only three ends – it’s either spent on deserving people or things, misspent on undeserving people and things or just rots away and falls into the hands of others (deserving or undeserving).” Stagnant wealth is of no utility. The personal experience of the author, and discussions on the subjects with practitioners like the investment advisors have been of use while formulating the various ideas incorporated. Investment choice patterns change from country to country, from state to state, and even within the state from city to small town halls. The levels of understanding change with the level of financial awareness. It is seen that the vernacular print media does not carry much financial education material and this makes a great difference in the levels of awareness about the financial investment instruments available to the investors in India. Volatility in the stock market also raises doubts of the investors. These days, the stock markets are influenced by world events and not just the domestic events. But , we have seen the rapid growth of investments in the mutual funds in the recent past and that raises hopes. Investments in mutual funds are likely to see robust growth in future in India.