Role of mutual funds in financing of industries in India

Ordinary individuals can invest in stocks and other money market products through mutual funds. Mutual funds are dynamic financial institutions that help an economy by encouraging people to save and invest in the stock market. This links savings to capital: narket Mutual funds' operations affect the savings and capital markets and the national economy. They help deepen and transmit money. They help customers save money and compete with banks and other financial institutions. The stock market is becoming increasingly sophisticated and volatile, making it difficult for small investors to trade safely and profitably. Mutual funds allow investors to aggregate their money into one large fund, which is subsequently invested in the stock market by specialists. Profits are shared with investors. Experts oversee mutual funds, which can always locate attractive offers because they have a lot of money. 1 Investor and the economy have benefited from mutual funds.

Indian mutual funds are strong financial intermediaries that help stabilise the financial system and efficiently employ resources.