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ZENITH International Journal of Business Economics & Management Research
Year : 2012, Volume : 2, Issue : 6
First page : ( 115) Last page : ( 130)
Online ISSN : 2249-8826.

Recent trends in mobilization and redeption of mutual funds: An emprical analysis

Ms. Priyanka*, Dr. Singh Tej**

* Assistant Professor, Department of Commerce, Govt. College for Women, Narnaul.

**Associate Professor, Department of Commerce, M.D. University, I. G. P.G. Regional Centre, MirPur, Rewari.

Abstract

Mutual fund industry today is one of the most preferred investment avenues in India. Mutual funds increase the mobilization of investable funds of the society by pooling the interest of a great number of small savers towards the financial system of the country. Resource mobilization means the movement of money or money – equals from the non or less productive section to the productive section. Redemption is the act of buying something back, or paying a price to return something to your possession. The paper tries to find out the trends in mobilization of funds and redemption/repurchase by the Unit Trust of India with the help of Trend Analysis, Growth Rate, Fixed-Base Index, Link-Relative Index and Coefficient of Determination. The study covers the period of twelve years i.e. from the year 1998-99 to 2009-10. The study based on the secondary data which has been collected from the fact books and published annual reports of both types of mutual funds for the twelve years. The paper found that the there is a felicitating trends in mobilization of funds by the UTI. Further, the study found that there is a sharp increase in redemption/repurchases during the study period and quite satisfactory in the form of a compound growth model is confirmed.

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Keywords

Fixed base, Mobilization of funds, Mutual Fund, Redemption, Repurchase, Relative Link Index, and Unit Trust of India.

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