Growth of mutual fund industry

Indian mutual fund industry has shown good progress in the past and has made a significant development within very short period since 1987, but some factors internal as well as external are responsible for its slow growth. Mutual fund business is still in rising stage and it has a lot of scope to widen the network throughout the country. Based upon the analysis of mutual fund resource mobilization (sector and scheme wise), the dominance of debt schemes was found in market and there was net outflow underbalanced schemes & fund of funds investing overseas. There were large number of debt & equity oriented schemes and small number of balanced & exchange traded funds. Further, the number of open ended schemes exceeded that of close ended schemes during 2010. While following the trends of transactions in stock market, it is found that there was a dominance of private sector mutual funds under the investors’ accounts and under share in net assets.