ORIGIN OF MUTUAL FUND: The modern mutual fund was first introduced in Belgium in 1822.

This form of investment soon spread to Great Britain and France. Mutual funds became popular in the United States in the 1920s and continue to be popular since the 1930s, especially open-end mutual funds. Mutual funds experienced a period of tremendous growth after World War II, especially in the 1980s and 1990s.

WHAT IS MUTUAL FUND: A mutual fund is a managed group of owned securities of several corporations. These corporations receive dividends on the shares that they hold and realize capital gains or losses on their securities traded. Investors purchase shares in the mutual fund as if it was an individual security. After paying operating costs, the earnings (dividends, capital gains or loses) of the mutual fund are distributed to the investors, in proportion to the amount of money invested. Investors hope that a loss on one holding will be made up by a gain on another. Heeding the adage "Don't put all your eggs in one basket" the holders of mutual fund shares are able collectively to gain the advantage by diversifying their investments, which might be beyond their financial means individually. A mutual fund may be either an open-end or a closed-end fund. An open-end mutual fund does not have a set number of shares; it may be considered as a fluid capital stock. The number of shares changes as investors buys or sell their shares. Investors are able to buy and sell their shares of the company at any time for a market price. However the open-end market price is influenced greatly by the fund managers. On the other hand, closed-end mutual fund has a fixed number of shares and the value of the shares fluctuates with the market. But with close-end funds, the fund manager has less influence because the price of the underlining owned securities has greater influence.

Mutual Funds - The Logic behind Investing in Them
Mutual funds are investment companies that pool money from investors at large and offer to sell and buy back its shares on a continuous basis and use the capital thus raised to invest in securities of different companies. This article helps you to know in depth on:
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Is it possible to diversify investment if invested in mutual funds? Find more on the working of mutual fund

First is the most organic way. mutual funds out numbered all the listed securities in New York Stock Exchange. Mutual funds have an upper hand in terms of diversity and liquidity at lower cost in comparison to bonds and stocks. y y Lowest per unit investment in almost all the cases Your investment will be diversified . The popularity of mutual funds may be relatively new but not their origin which dates back to 18th century. Are Mutual Funds Risk Free and What are the Advantages? One must not forget the fundamentals of investment that no investment is insulated from risk. Closed end funds have limited number of shares. Then it becomes interesting to answer why mutual funds are so popular. which is the dividend they get on the securities they hold. The fundamental understanding behind this is not all corporations and sectors fail to perform at a time. Mutual funds get their earnings in two ways. Mutual funds posses shares of several companies and receive dividends in lieu of them and the earnings are distributed among the share holders. this is not entirely untrue if one takes a look at performances of various mutual funds. Holland saw the origination of mutual funds in 1774 as investment trusts before spreading to Anglo-Saxon countries in its current form by 1868. This relative freedom from risk is in addition to a couple of advantages mutual funds carry with them. A Brief of How Mutual Funds Work Mutual funds can be either or both of open ended and closed ended investment companies depending on their fund management pattern.y Know more about the legal aspects in relation to the mutual funds At the beginning of this millennium. we can say mutual funds are relatively risk free in the way they invest and manage the funds. So. if you are a retail investor and planning an investment in securities. Yes. Second is by the redemption of their shares by investors will be at a discount to the current NAVs (net asset values). Mutual funds are investment companies that pool money from investors at large and offer to sell and buy back its shares on a continuous basis and use the capital thus raised to invest in securities of different companies. And in the event of a security of a corporation or a whole sector doing badly then the possible losses from that would be balanced by the returns from other shares. Mutual funds have diversified investments spread in calculated proportions amongst securities of various economic sectors. The stocks these mutual funds have are very fluid and are used for buying or redeeming and/or selling shares at a net asset value. you will certainly want to consider the advantages of investing in mutual funds. The investment from the pool is well diversified across securities and shares from various sectors. We will discuss now as to what are mutual funds before going on to seeing the advantages of mutual funds. This logic has seen the mutual funds to be perceived as risk free investments in the market. An open-end fund offers to sell its shares (units) continuously to investors either in retail or in bulk without a limit on the number as opposed to a closed-end fund. To begin with.

Mutual funds offer choice.y Your investment will be managed by professional money managers Definition An open-ended fund operated by an investment company which raises money from shareholders and invests in a group of assets. blend fund. balanced fund. shareholders receive an equity position in the fund and. in each of its underlying securities. and convenience. much like any other type of company can sell stock in itself to the public. fund of funds. clone fund. growth and income fund. crossover fund. especially open-end mutual funds. shareholders are free to sell their shares at any time. prime rate fund. This y form of investment soon spread to Great Britain and France. specialty fund. income fund. index fund. sector fund. capital appreciation fund. Mutual funds experienced a period of tremendous growth after World War II. liquidity. although the price of a share in a mutual fund will fluctuate daily. In return for the money they give to the fund when purchasing shares. For most mutual funds. depending upon the performance of the securities held by the fund. in effect. mutual funds raise money by selling shares of the fund to the public. especially in the 1980s and 1990s . There are many types of mutual funds. hedge fund. but is actually an investment trust. stock fund. but charge fees and often require a minimum investment. Mutual funds became popular in the United States in the 1920s and continue to be popular since the 1930s. regional fund. money market fund. in accordance with a stated set of objectives. A closed-end fund is often incorrectly referred to as a mutual fund. and tax-free bond fund. HISTORY OF MUTUAL FUND The modern mutual fund was first introduced in Belgium in 1822. Mutual funds then take the money they receive from the sale of their shares (along with any money made from previous investments) and use it to purchase various investment vehicles. municipal bond fund. growth fund. bonds and money market instruments. global fund. international fund. closed fund. equity fund. bond fund. including aggressive growth fund. asset allocation fund. such as stocks. Benefits of mutual funds include diversification and professional money management.

The ratings are a useful tool for identifying funds worthy of further research. or other securities. For example MorningStar rates mutual funds from 1 to 5 stars based on how well they've performed (after adjusting for risk and accounting for sales charges) in comparison to similar funds. based entirely on a mathematical evaluation of past performance. Funds with less than three years of history are not rated. even if some securities lose value. economic conditions like a rise in interest rates may cause certain securities in a diversified portfolio to decrease in value. according to the kind of investments the mutual fund trades. but should not be considered signals to buy or sell. the value of the overall portfolio should gradually increase over time. Fund managers hired by the mutual fund company are paid to invest the money that the investors have placed in the fund. five. A mutual fund owns the securities of several corporations. the higher the quality of the fund. real estate. When a portfolio is balanced in this way. Within each MorningStar Category. Heeding the adage "Don't put all your eggs in one basket" the holders of mutual fund shares are able to gain the advantage of diversification which might be beyond their financial means individually. Investors purchase shares in the mutual fund as if it was an individual security. Ratings are objective. Usually the higher the rank. They have a one-to-five star system in which five stars is the best. MUTUAL FUND RANKING Mutual fund ranking Funds are ranked based upon their performance as a whole and performance against their peers by such companies as MorningStar which has an industry recognized rating system for mutual funds.and 10. . Other securities in the portfolio will respond to the same economic conditions by increasing in value. A mutual fund pools money from hundreds and thousands of investors to construct a portfolio of stocks. the top 10% of funds receive 5 stars and the bottom 10% receive 1 star.How mutual funds earn money A mutual fund is a means of investing that enables individuals to share the risks of investing with other investors. All contributors to the fund experience an equal share of gains and losses for each dollar invested. The advantages of investing in a Mutual Fund are: y Diversification: The best mutual funds design their portfolios so individual investments will react differently to the same economic conditions.years and these ratings are combined to produce an overall rating. For example. Funds are rated for up to three time periods: three-. bonds.

you need to have someone managing your money professionally. in India [ Images ]. There is a mathematical and financial basis to this. and you've got the cash. Diversification: There is an old saying: Don't put all your eggs in one basket. but to be a successful investor. Mutual funds help investors by providing them with a qualified fund manager. Liquidity: It's easy to get your money out of a mutual fund. Convenience: You can usually buy mutual fund shares by mail. because index funds are not actively managed. These managers decide what securities the fund will buy and sell. Low cost: Mutual fund expenses are often no more than 1.5 percent of your investment. make a call. Just as people who have money but not have the requisite skills to run a company (and hence must be content as shareholders) hand over the running of the operations to a qualified CEO. Expenses for Index Funds are less than that. investors who lack investing skills need to find a qualified fund manager.y Professional Management:Most mutual funds pay topflight professionals to manage their investments. Instead. Write a check. If you invest most of your savings in a single security (typically happens if you have ESOPs (employees stock options) from your company. fund managers are acquiring global certifications like CFA and MBA which help them be at the cutting edge of the knowledge in the investing world. Anybody who has surplus capital to be parked as investments is an investor. they automatically buy stock in companies that are listed on a specific index Transparency Flexibility Choice of schemes Tax benefits Well regulated y y y y y y y y y 6 advantages of investing in a mutual fund Professional expertise: Investing requires skill. Regulatory oversight: Mutual funds are subject to many government regulations that protect investors from fraud. similarly. Increasingly. or one investment becomes very large in your portfolio due to tremendous gains) or a single type of . phone. It requires a constant study of the dynamics of the markets and of the various industries and companies within it. or over the Internet.

you can diversify across asset classes at very low cost. which helps you keep track whether the fund is investing in line with its objectives or not. which make it easy for them to collect and you to send your application to. which helps provide comfort to the investors. you need to invest in different types of securities such that they do not move in a similar fashion. when equity markets perform. Note the scenario of low yields on debt securities over the last three years while equities yielded handsome returns. Since they are very well integrated with the banking system. Disadvantage 1: Mutual Funds Have Hidden Fees . you are ready to invest in a mutual fund: it is as simple as that! You need to fill in the application form. most funds can send money directly to your banking account. Investing in debt funds costs even less. Typically. or international securities for you to provide the best diversification. Similarly.25% of your initial money and around 1. Liquidity: Mutual funds are typically very liquid investments. or gold. Sebi requires the mutual funds to disclose their portfolios at least six monthly.000) and sign your cheque and you investment in a fund is made. would typically have around hundred different shares). you would have to invest significantly more for the professional benefits and diversification. attach your PAN (typically for transactions of greater than Rs 50.security (like real estate or equity become disproportionately large due to large gains in the same).and you can buy mutual funds of amounts as low as Rs 500 a month! -. for example. which helps the investor make an informed choice. Equity funds in India typically charge you around 2. Unless they have a pre-specified lock-in. they achieve economies of scale. If you had to invest smaller sums of money on your own. mutual funds have many distributors and collection points. Typically funds take a couple of days for returning your money to you. In the top 8-10 cities. Low cost of asset management: Since mutual funds collect money from millions of investors. mutual funds hold hundreds of different securities (a diversified equity mutual fund. Sebi forces transparency on the mutual funds. Ease of process: If you have a bank account and a PAN card. you are exposed to any risk that attaches to those investments. The cost of running a mutual fund is divided between a larger pool of money and hence mutual funds are able to offer you a lower cost alternative of managing your funds. Well regulated: India mutual funds are regulated by the Securities and Exchange Board of India. it will take you immense amounts of money and research to do this.5% to 2% of your money invested every year as charges. you need to invest in real estate. Within the various asset classes also. In order to reduce this risk. If you want to do this on your own. debt markets do not yield good returns. if you buy mutual funds -. your money will be available to you anytime you want. However.

But. y Disadvantage 5: All Mutual Funds Have High Capital Gains Distributions If all mutual funds sell holdings and pass the capital gains on to investors as a taxable event.com. invest in a mutual fund that does not charge the fee. Many mutual funds do not charge a 12b-1 fee. you have access to your cash the day after the sale. y Disadvantage 2: Mutual Funds Lack Liquidity How fast can you get your money if you sell a mutual fund as compared to ETFs. those hidden fees would certainly be on the list of disadvantages of mutual funds. Advantages of Mutual Funds-Overview y Flexibility: The investments pertaining to the Mutual Fund offers the public a lot of flexibility by means of dividend reinvestment. You can only find more liquidity if you invest in your mattress. systematic investment plans and systematic withdrawal plans. the transaction will take place at the close of the market regardless of the time you entered the order to buy or sell the mutual fund. While these 12b-1 fees are no fun to pay. y Disadvantage 3: Mutual Funds Have High Sales Charges Should a sales charge be included in the disadvantages of mutual funds list? It s difficult to justify paying a sales charge when you have a plethora of no-load mutual funds. ETFs. y Disadvantage 4: Mutual Funds and Poor Trade Execution If you buy or sell a mutual fund. The hidden fees that are lamented are properly referred to as 12b-1 fees. . Oh well. However. Hidden fees cannot make the list of disadvantages of mutual funds because they are not hidden and there are thousands of mutual funds that do not charge 12b-1 fees. If you decide to invest in ETFs over mutual funds because your order can be filled at 3:50 pm EST with ETFs rather than receive prices as of 4:00 pm EST with mutual funds. The fee is disclosed in the mutual fund prospectus and can be found on the mutual funds web sites. not all mutual funds make annual capital gains distributions. then we have a found a winner for the list of disadvantages of mutual funds list. stocks and closed-end funds? If you sell a mutual fund. Sales charges are too broad to be included on my list of disadvantages of mutual funds. Yes. if they have the gains. Index mutual funds and tax-efficient mutual funds do not make these distributions every year. stocks and closed-end funds require you to wait three days after you sell the investment. I find the trading of mutual funds to be a simple.y If fees were hidden. many mutual funds (including index mutual funds and tax-efficient mutual funds) are low-turnover funds and do not make capital gains distributions on an annual basis. I would call the lack of liquidity disadvantage of mutual funds a myth. stress-free feature of the investment structure. I recommend that you sign up for the Stress Management Weekly Newsletter at About. If you find the 12b-1 fee onerous. many advocates and purveyors of ETFs will point out that you can trade throughout the day with ETFs. it s difficult to say that a sales charge is a disadvantage of mutual funds when you have thousands of mutual fund options that do not have sales charges. they must distribute the gains to shareholders. they are not hidden. then again. However.

or financial planners. If the entire stock market declines in value. you will pay a sales commission if you buy shares in a Load Fund. you will pay taxes on the income you receive. Investors encounter fewer risks when they invest in mutual funds than when they buy and sell stocks on their own. Of course. anyone who invests through a mutual fund runs the risk of losing money. the value of mutual fund shares will go down as well. Fees and commissions: All funds charge administrative fees to cover their day-to-day expenses. no matter how balanced the portfolio. So they are in a better position to analyze the scopes of lucrative return from the investments. However. Even if you don't use a broker or other financial adviser. The experienced Fund Managers pertaining to the Mutual Funds examine all options based on research and experience. Disadvantages of mutual funds y No Guarantees: No investment is risk free. admired by all stakeholders The largest and most efficient money manager with global presence The best in class customer service provider The most preferred employer . Management risk: When you invest in a mutual fund. If the manager does not perform as well as you had hoped. the investors have the option of redeeming or withdrawing money at any point of time at the current rate of net value asset. even if you reinvest the money you made.y y y y y y y Affordability: The Mutual funds are available in units. Regulated for investor protection: The Mutual Funds sector is regulated by the Securities Exchange Board of India (SEBI) to safeguard the rights of the investor. Hence they are highly affordable and due to the very large principal sum. Some funds also charge sales commissions or "loads" to compensate brokers. brokerage. financial consultants. Potential of return: The Fund Managers of the Mutual Funds gather data from leading economists and financial analysts. because these funds do not employ managers. you might not make as much money on your investment as you expected. Low Costs: The fees pertaining to the custodial. y y y OVERVIEW Our mission is to make UTI Mutual Fund: y y y y The most trusted brand. most actively managed mutual funds sell anywhere from 20 to 70 percent of the securities in their portfolios. Liquidity: In case of Open Ended Mutual Fund schemes. Diversification: The risk pertaining to the Mutual Funds is quite low as the total investment is distributed in several industries and different stocks. you depend on the fund's manager to make the right decisions regarding the fund's portfolio. Professional Management: The Mutual Funds are professionally managed. If your fund makes a profit on its sales. even the small investors are benefited by the investment scheme. and others is very low. if you invest in Index Funds. you forego management risk. Taxes: During a typical year.

56. All these have evolved UTI Mutual Fund to position as a dynamic. To ensure better management of funds.amfiindia.854 Crores as on 31st Dec 2007 (source: www. . Assets Under Management UTI Asset Management Company presently manages a corpus of over Rs. UTI MUTUAL FUND The setting up of the Unit Trust of India (UTI) in 1963 heralded the birth of the Indian mutual fund industry. for undertaking portfolio management services and also acts as the manager and marketer to offshore funds through its 100 % subsidiary. efficient and transparent SEBI compliant entity. Dubai and Bahrain. 2003 is when UTI Mutual Fund started to pave its path following the vision of UTI Asset Management Company Limited. UTI mutual fund launched its flagship scheme US-64 and went on to become a generic term for the mutual fund sector till the government allowed public sector banks to start mutual funds in 1987. All the branches. The UTI Asset Management Company provides professionally managed back office support for all business services of UTI Mutual Fund (excluding fund management) in accordance with the provisions of the Investment Management Agreement. With a view to reach to common investors at district level.com) . a risk management department is also in operation. responsive. registered in Guernsey. who has been appointed by the UTI Trustee Company Limited for managing the schemes of UTI Mutual Fund and the schemes transferred/migrated from the erstwhile Unit Trust of India. Channel Islands. 1993 on 3rd February 2004. State-of-the-art systems and communications are in place to ensure a seamless flow across the various activities undertaken by UTIMF. who have been highly empowered to manage funds with greater efficiency and accountability in the sole interest of unit holders. UTI International Limited. We have a well-qualified. The fund managers are also ably supported with a strong in-house securities research department. UFCs and registrar offices are connected on a robust IT network to ensure cost-effective quick and efficient service. professional fund management team. 3 satellite offices have also been opened in select towns and districts. UTI Mutual Fund has a track record of managing a variety of schemes catering to the needs of every class of citizenry. In 1964. the Trust Deed.y y The most innovative and best wealth creator A socially responsible organisation known for best corporate governance Genesis Jan 14. It has a nationwide network consisting 79 UTI Financial Centres (UFCs) and UTI International offices in London. Reliability UTIMF has consistently reset and upgraded transparency standards. UTI AMC is a registered portfolio manager under the SEBI (Portfolio Managers) Regulations. restructured. the SEBI (Mutual Funds) Regulations and the objectives of the schemes.

2) Providing Investment Avenue One of the basic characteristics of a mutual fund is that it provides an ideal avenue for investment for persons of small means. and enables them to earn a reasonable return with the . before the government bailed it out and restructured the fund. Bank of Baroda and Punjab National Bank.028 crore under management as of Aug 2006. The flow chart below describes broadly the working of a mutual fund. the fund has somewhat redeemed its credibility through professional management and a booming market. To an investor. BACK GROUND OF MUTUAL FUNDS 1) Mobilizing Small Savings Mutual funds mobilize funds by selling their own shares. debentures and other securities.35. The money thus collected is then invested in capital market instruments such as shares. CONCEPT A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. After the restructuring. the UTI mutual fund could not sustain the initial tempo and was on the verge of a collapse in 2001. professionally managed basket of securities at a relatively low cost. UTI Mutual Fund remains the largest fund in the country with assets of over Rs. SBI. know as units. The fund's sponsors are public sector financial giants like Life Insurance Corporation.Despite being the trendsetter in the segment. UTI Asset Management Company Private Limited. The income earned through these investments and the capital appreciations realized are shared by its unit holders in proportion to the number of units owned by them. a unit in mutual funds means ownership of a proportional share of securities in the portfolio of a mutual fund. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified. The sponsors hold equal stakes in the asset management company.

Mutual funds provide small investors the access to a . In addition. This is advantageous to small investors who cannot afford having market price. 4) Diversified investment Mutual Funds have the advantage of diversified of funds un various industry segments spread across the country. Thus. 6) Reduced risks There is only a minimum risk attached to the principal amount and return for the investments made in mutual fund schemes. It offers investors a proportionate claim on the portfolio of assets that fluctuate in value in comparison to the value of the assets that comprise the portfolio. there is also an obligation imposed by SEBI guidelines. There is always a ready market available for the mutual funds units. This is usually made possible by expert supervision. 5) Better liquidity Mutual funds have the distinct advantage of offering to its investors the benefit of better liquidity of investment. Mutual funds employ professional experts who manage the investment portfolios efficiency and profitably. mutual funds allow millions of investors to have investments in a variety of securities of many different companies.advantages of relatively better liquidity. diversification and liquidity of units. 3) Professional management It is possible for the small investors to have the benefit of professional and expert management of their funds.

whereby it is possible to switch from one scheme to another. NEED FOR THE STUDY . economies of scale in transaction cost and professional finance management. 7) Investment protection Mutual Funds in India are largely regulated by guidelines and legislative provisions put in a place by regulatory agencies such as the SEBI.reduced investments risk resulting from diversification. In order to protect the investor interest. This is due the large volume of money being handled by mutual funds in the capital market. or form a close-ended scheme to an opened scheme. 9) Tax benefits An attractive benefit of mutual funds is that the various scheme offered by them provide tax shelter to the investor. The Securities Exchange commission (SEC) in the USA allows for provision of safety of investments. This benefit is available under the provision of the Income Tax Act. such as brokerage fee or trading commission etc is lower. This flexibility enables investors to shift from income scheme. 10) Low transaction costs The cost of purchase and sale of mutual fund units is relatively lower. it is incumbent on the part mutual funds to broadly follow the provisions laid down in this regard. 8) Switching facility Mutual funds provide investors with flexible investment opportunities. The fees payable. vice versa. This obviously enhances the quantum of distributable income available for investors. all at will.

Later. especially the small investors. . many large financial institutions under government control also came out with mutual funds subsidiaries. so as to accelerate the industrial and economic development of the country. A host of other fund schemes were subsequently introduced by the UTI. The basic objective behind the setting up of the Trust was to mobilize small savings and to allow channeling of those savings into productive sectors of the economy. REASONS FOR SLOW GROWTH 1 2 3 4 Diaphaneity between NAV and listed price. SBI set up the first mutual fund. for the purpose of allowing the growth of the mutual funds industry in an orderly fashion for the benefit of the investors. The first unit scheme offered was the US-64 . The government introduced a number of regulatory measures. which was followed by Central Bank. Poor investors servicing. It was set up in the year 1964 by a special Act of Parliament. Non-uniformity in the calculation of NAV. when the government of India permitted commercial banks in the public sector to set up subsidiaries operating as trusts to perform the functions of mutual by amending the Banking Regulation Act. Lack of transparency. namely the Unit Trust of India (UTI). through various agencies such as the SEBI.SCOPE OF THE STUDY NEEDED FROM SUKANYA MUTUAL FUND IN INDIA The mutual fund industry in India made its debut with the setting up of the largest public sector mutual fund in the world. The monopoly of the UTI has ended in the year 1987.

When money is borrowed. 6 Mutual fund permitted to under mix shares. the enterprise raises that money by either selling ownership shares in it or simply borrowing the money. 3 Opening of market to foreign investors. 2 Disbanding of controller of capital issues office. 7 Union budget. Commonly.5 6 7 Too much dependence on outside agencies. Absence of qualified sales force. PROFILE When a large amount of money is needed for any enterprise. . the investor gets stock shares. Investors psychology. from building a factory to funding a corporation to drilling wells in a new oil field. Stocks and bonds are both securities. that money is raised from investors usually a large number of them. 5 Government support. When ownership is sold. the investor gets bonds. FUTURE OF MUTUAL FUND IN INDIA 1 The SEBI support only big investors. 4 Entry of large domestic institutions investments.

Additionally. and do-it-yourself online trading. seeking to maximize its value. which consist of a variety of securities. insurance companies. Not only are there more investments to choose from. and electronic trading for most of us. and it sells shares in these funds to investors directly and through securities brokers. individually managed accounts. There s also a range of venue options available should one have an itch to invest. bonds. and they have more choices. and university endowments. The choices for the small-time investor have never been greater. mutual funds. and they include stocks. insurance companies. such as pension funds. real estate trusts. and institutional investors. more people than ever before can now be classified as investors. either directly or indirectly. discount brokerages. and money managers are still there to try to create wealth for them. real estate trusts. and an ever-growing diversity of mutual funds. including stocks. exclusive opportunities such as hedge funds and venture capital funds for so-called high-net-worth individuals. corporate accounts. And we haven t even considered the institutional investor yet. The pensions. With the tremendous proliferation of 401(k). including traditional fullservice firms. and foundations and endowments that used to comprise nearly all investors are still around. there are also more ways to invest: full-service brokerages. and other types of retirement plans during the 1990s. such as multimillionaires. More people invest in securities today than ever before. mutual fund companies and other so-called asset management firms form funds. and various alternative investments. bonds. IRA. limited partnerships. discount brokerages. . The asset management company buys and sells the securities in a fund.

hiring won t be uniformly aggressive. Companies catering to lower-end investors. the top-tier firms always have slots open for new talent.This all boils down to a wide range of career options in a dynamic industry. In all. . are still smarting from their past irrational exuberance. Additionally. Though firms say they will hire in 2005. the downward spiral seems to have stopped and some insiders feel that the industry can t continue to grow without doing some substantial hiring. the discount brokers.

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