Page 1 of 11
Journal for Studies in Management and Planning
Available at
http://edupediapublications.org/journals/index.php/JSMaP/
I SSN: 2395-0463
Vol ume 04 I s s ue 03
Ma rc h 2018
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 393
SWOT Analysis of Mutual Funds
Alka
Assistant Professor of Commerce
Budha Group of Institutions, Karnal
Abstract
Mutual funds have become extremely popular over the last 20 years.
Financial instrument is now a part of our daily life. More than 80
million people, or one half of households in America invest in mutual
funds. That means, in United States only, trillions of dollars are
invested in mutual funds. In fact, to many people investing means
buying mutual funds. Investing in mutual funds is better than simply
letting your cash waste away in a saving account, but for most people
that whereas the understanding of funds ends. A Mutual fund is
nothing more than a collection of stock or bond. Mutual fund is a
company that brings together a group of people and invests their money
in stock, bond or other securities. Each investor owns share, which
represent a portion of holdings of funds.
Keywords: SWOT Analysis, Portfolio, Merger, Acquisition, Bearish,
Portfolio, Diversification.
Page 2 of 11
Journal for Studies in Management and Planning
Available at
http://edupediapublications.org/journals/index.php/JSMaP/
I SSN: 2395-0463
Vol ume 04 I s s ue 03
Ma rc h 2018
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 394
MUTUAL FUNDS AND ITS SWOT – A PRESENT DAY SCENARIO
Introduction
There are lot of investment avenues available today in the financial
market for an investor with an investible surplus. He can invest in
Bank deposit, corporate Debentures, as well as in bonds where there is
low risk but low return. He may invest in stock of companies where the
risk is high and the returns are also proportionately high. The recent
trends in the Stock Market have shown that an average retail investor
always lost with periodic bearish trends. People began opting for
portfolio managers with expertise in stock markets who would invest on
their behalf. Thus, we had wealth management services provided by
many institutions. However, they proved too costly for a small investor.
These investors have found a good shelter with the mutual funds.
Mutual fund industry has seen a lot of changes in past few years with
multinational companies coming in to country, ringing in their
professional expertise in managing funds worldwide. In the past few
months, there has been a consolidation phase going on in the mutual
fund industry in India. Now investors have a wide range of schemes to
choose from depending on their individual profiles.
Page 3 of 11
Journal for Studies in Management and Planning
Available at
http://edupediapublications.org/journals/index.php/JSMaP/
I SSN: 2395-0463
Vol ume 04 I s s ue 03
Ma rc h 2018
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 395
History of Indian Mutual funds
The history of the Indian mutual fund industry can be traced to
the formation of UTI in 1963. This was a joint initiative of the
Government of India and RBI. It held monopoly for nearly 30 years.
Since 1987, non-UTI mutual funds entered the scenario. These
consisted of LIC, GIC and public-sector bank backed Indian mutual
funds. SBI Mutual fund was the first of this kind. 1993 saw the entry of
private sector players on the Indian Mutual Funds scene. Mutual fund
regulations were revised in 1996 to accommodate changing market
needs.
With the Sensex on a scorching bull rally, many investors prefer to
trade on stocks themselves. Mutual funds are more balanced since they
diversify over a large number of stocks and sectors. In the rally of 2000,
it was noticed that mutual funds did better than the stocks mainly due
to prudent fund management based on the virtues of diversification.
Different Indian mutual funds allow investors various solutions
ranging from retirement planning and buying a house to planning for
child's education or marriage. Tax-wise stocks and mutual funds work
similarly since long-term capital gains from both stocks and equity- oriented mutual funds are tax-free.
