Small and Medium Enterprises (SMEs) have a high growth potential in India. With this growth potential, SMEs are expected to register higher profits in the years to come. The challenge at that point of time would lie in managing the surplus funds available with them. Generally, such industries prefer to keep their funds parked in banks, that are considered to be a safe avenue, coupled with a steady rate of return. But, today the financial market is flooded with an array of alternative investment avenues. One such avenue, where small amount of money can be invested to reap benefits of risk mitigation is mutual funds. Mutual funds, by their definition pull the corpus of various investors and invest in a portfolio of securities in order to diversify risk and provide a higher return in comparision to the traditional modes of investment. Keeping this in mind, it was felt that a primary level survey of the SMEs preference towards mutual funds investment can be worthwhile. With this objective, the following survey was conducted among select SMEs in India to seek their response.
The objective of the article is to explore the scope of mutual funds among the SMEs.The article explores the potential of mutual fund investment by SMEs in India taking a sample study under consideration. This article also aims to bring to light the various investment options for SMEs with an emphasis on the mutual fund and their level of involvement in the said industry. The article uses both primary and secondary data that is collected for the purpose of the same. Primary data is collected from the respondents through questionnaires. Secondary data is collected from published sources such as leading magazines, journals, news papers and online sources. |
