GROWTH OF PRIVATE AND PUBLIC SECTOR MUTUAL FUNDS IN INDIA AND ITS IMPACT ON GDP

Abstract

 Mutual funds are critical financial institutions in facilitating the mobilization and investment of savings in the capital market. Thus they establish a connection between capital markets and savings. The funds from the sale of units to the general public are invested in an extensive assortment of market securities. Present paper discussed the growth of mobilization of resources by the mutual fund industry, sector-wise and scheme-wise in India and to examine the impact of the Net Asset Under Management (AUM) of mutual funds on the GDP of India’s economy. Based on the analysis it was concluded that, the private sector is contributing more than 80 % of the resources mobilized by the mutual fund industry, open-ended schemes performed better than the other types of schemes and there is a significant impact of Assets Under management on the GDP of the Indian Economy.