In this book we explain how through mutual fund we can invest in capital market instruments such as shares, debentures and other securities. It works in a different manner as compared to other savings organizations such as banks, national savings, post office, non banking financial companies etc.
As most if not all capital market instruments have an element of risk it is very essential that the investors have a clear understanding of how a mutual fund operates and what are its advantages and limitations. This understanding has to be created in the investors by the distributors engaged in the marketing of mutual fund products.
The distributors should also be knowledgeable enough to answer fundamental and basic questions that will be raised by the investor. It is thus essential that those engaged in marketing of Mutual Funds such as individual agents, distributor companies, bank executives and others have a comprehensive, clear and correct understanding of the concept and working of Mutual Funds as well as essential operational and technical details.