ABSTRACT: This project ―QUERY HANDLING, INVESTOR SERVICES AND CONSUMER BENEFIT IN INVESTING IN MUTUAL FUNDS‖ has been prepared for the requirements of the Post Graduate Diploma in Business Management. I have tried my best to present my project under the able Co-operation with all the staff of Reliance Mutual Fund and my faculties Project stretched for Eight weeks training in the company to gain the knowledge of mutual funds. Mutual funds are now the most appropriate investment option for the investors. The development of economic form of organization marks turning point for rapid industrialization and economic growth. This form of organization flourished on account of several features such as limited liability easy transerferability of share separate legal entity etc. This led to development of security market where ownership interest are initially sold (Primary market) and later sold in the faster industrial growth and channelizing the savings of masses who do not venture to create and manage enterprise but want to be more investor.
AN OVERVIEW ON MUTUAL FUNDS:-
HISTORY OF MUTUAL FUNDS:-
In 1774, a Dutch merchant invited subscriptions from investors to set up an investment trust by the name of endragt Maakt Magt (translated into English, it means, ‗Unity Creates Strength‘), with the objective of providing diversification at low cost to small investors. Its success caught on, and more investment trust were launched, with verbose and quirky names that when translated read ‗profitable and prudent‘ or ‗small maters grow by consent. The foreign and colonial Govt. trust, formed in London in 1868, promised ‗start ‗the investor of modest means the same advantages as the large capitalist… by spreading the investment over a number of stock.
When three Boston securities executives pooled their money together in 1924 to create the first mutual fund, they had no idea how popular mutual funds would become. The idea of pooling money together for investing purposes started in Europe in the mid-1800s. The first pooled fund in the U.S. was created in 1893 for the faculty and staff of Harvard University. On March 21st, 1924 the first official mutual fund was born. It was called the Massachusetts Investors Trust.
After one year, the Massachusetts Investors Trust grew from $50,000 in assets in 1924 to $392,000 in assets (with around 200 shareholders). In contrast, there are over 10,000 mutual funds in the U.S. today totaling around $7 trillion (with approximately 83 million individual investors) according to the Investment Company Institute.