* Dept. Commerce & Business Administration, P.G Centre, P.B. Siddhartha College of Arts and Science Vijayawada, (A.P.).
** Dept. Of Management Science, Nalanda Institute of Post Graduate courses Sattenapalli, Guntur (Dt.) (A.P.).
Indian mutual fund industry has, within a short period, emerged as a significant financial intermediary, assisting efficient resource allocation, providing strong support to capital markets and helping investors to realize the benefits of stock market investing. With growing complexity of security market, busy investors are unable to keep track of its movement and direction. Unfortunately, the investor has little information to guide him and help him to take prudent decisions.
Such information draught is the breeding groundfor misinformation, and the investor is likely to be led up the garden path by agents and inspired columnists extolling the virtue of a particular scheme without subjecting it to a microscopic examination. Laxity of regulation, too, has contribud in no small measure to perpetuating the cult of ignorance at various levels. In India. ‘disclosure norms’ are supposedly confined to publish the ‘net asset value’ (NAV) - the myth and the mystique of which is yet to be exploded. Simple arithmetical calculation on premium/discount on NAV figures pass under the label of research. The present paper is an attempt to study the myths and mystiques of mutual funds through a critical evaluation and finally offers some common guidelines to mutual funds investors.
