In recent times, the Indian Mutual Fund Industry has witnessed several structural and regulatory reforms. This article takes a closer look at some of those changes.

Even though the capital market attracts people, there are several problems associated with it. While investing directly into capital market one has to be careful to judge the valuation of the stock and understand the complexities involved in the stock price fluctuations. So, a person with moderate knowledge of capital market generally prefers to invest in Mutual Funds (MFs). In recent times, MFs industry in India is growing rapidly and is undergoing tremendous changes. The prices of gold and real estate have reached to sky high levels not only in India but throughout the world. Both these traditional investment avenues have been extremely popular with Indian investors. Regulations have also favored these two classes of investments with the Securities and Exchange Board of India introducing norms for gold traded funds and the government relaxing norms for Foreign Direct Investments in real estate ventures. This article attempts to discuss some of the important developments which have taken place recently.

During the past decade, the Indian financial market has witnessed considerable maturity. The primary reason for this is the Liberalization, Privatization, Globalization (LPG) process in 1991. The entire process has brought in a lot of changes in various aspects of the financial market. During last few years, savings of the country was around 23%, which was one of the highest in the world.

Saving forms an important part of the economy of any country. As various options available for these saving to be invested, money acts as a driver for the growth of a country. The Indian financial scene provides ample opportunities for investment. If not the best, but mutual funds provide one of the better options for an ordinary investor to earn a reasonable rate of return.

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