ABSTRACT

When the concept of companies initially formed, people who knew each other and were
willing to take the risk of the venture used to put in the share capital of the company. Slowly,
entrepreneurs realized that many are interested in investing financially in the company but do not
want to take the day-to-day hassle of managing the company. Thus began the concept of passive
investing in companies: with shareholders and executives separated. Similarly, in the case of
mutual funds, people are not interested in the day-to-day management of the funds but are
interested in the final outcome of the investment. Hence, they pool their money together, hire an
investment manager who manages funds for them and expect to earn a return on them. There are
many companies which are performing investment of funds at large, medium and small level.