Role of Mutual Funds in the Economic Development: UPSC Daily Important Topic | 9 February 2022

Role of Mutual Funds in the Economic Development

As the definition of the Mutual Funds says that its a pool of collective investment by the different investors and institutions.

1. It helps in arranging the money for investment purposes in the economy.

2. It mobilise the small savings of the public through investment.

3. We know that developing countries like India lacks capital accumulation. So mutual funds help in capital accumulation which is crucial for the development of a developing country like India.

4. It discourages the idle hoarding of the money in the house.

5. It helps in creating an environment of investment in the country.

6. It is helpful in employment generation.