'DFI, MUTUAL FUNDS, RRB' With You
'DFI, MUTUAL FUNDS, RRB' With You
'DFI, MUTUAL FUNDS, RRB' With You
However, poor country/economy may be, there will be a need for institutions
which allow such savings, as are currently forthcoming, to be invested
conveniently and safely and which ensure that they are channeled into the
most useful purposes. A well-developed financial structure will therefore aid
in the collections and disbursements of investible funds and thereby
contribute to the capital formation of the economy. Indian capital market
although still considered to be underdeveloped has been recording impressive
progress during the post-interdependence period.
Support to the Capital Market
The basic purpose of DFIs particularly in the context of a developing economy,
is to accelerate the pace of economic development by increasing capital
formation, inducing investors and entrepreneurs, sealing the leakages of
material and human resources by careful allocation thereof, undertaking
development activities, including promotion of industrial units to fill the gaps
in the industrial structure and by ensuring that no healthy projects suffer for
want of finance and/or technical services.
Special capital and seed Capital schemes have been introduced to provide
equity type of assistance to new and technically skilled entrepreneurs who lack
financial resources of their own even to provide promoter’s contribution in
view of long-term benefits to the society from the emergence of a new class of
entrepreneurs. Development banks have been actively involved in the
entrepreneurship development programmes and in establishing a set of
institutions which identify and train potential entrepreneurs.
A mutual fund is a company that pools money from many investors and invests
the money in securities such as stocks, bonds, and short-term debt. The
combined holdings of the mutual fund are known as its portfolio. Investors buy
shares in mutual funds. Each share represents an investor’s part ownership in
the fund and the income it generates.
Mutual funds are a popular choice among investors because they generally offer
the following features:
Professional Management. The fund managers do the research for you. They
select the securities and monitor the performance.
Diversification or “Don’t put all your eggs in one basket.” Mutual funds typically
invest in a range of companies and industries. This helps to lower your risk if one
company fails.
Affordability. Most mutual funds set a relatively low dollar amount for initial
investment and subsequent purchases.
Liquidity. Mutual fund investors can easily redeem their shares at any time, for the
current net asset value (NAV) plus any redemption fees.
of a checking account.
NBFCs before the Dodd-Frank Act were referred to as “shadow banks” to describe them
as the fast-expanding plethora of institutions that contributed to the easy-money
lending environment. The subprime mortgage meltdown and financial crisis that
followed was a direct product of the “shadow banks” becoming too prominent and
lacking enough regulation.
Many very large and prominent investment companies and brokerages were involved
with the activities that led to the financial crisis. After the financial crisis, traditional
banks found themselves under an intense regulatory microscope. It led to a large
contraction of lending activities, as regulations for lending and other credit activities
tightened. However, the demand for borrowing remained the same, and NBFCs were
able to fill the void of funding.
After the 2008 Global Financial Crisis, NBFCs were able to grow very quickly, and in
various industries.
Regional Rural Banks or RRBs are government banks operating at
regional level in different states of India. These are designed to cater the
needs of the rural area people. Regional Rural Banks commercial banks
which helps to bring the financial inclusion in the primary level of the nation.
Board of Directors
Chairman & Managing Director
General Manager
Assistant General Manager
Regional Manager/Chief Manager
Senior Manager
Manager
Officer
Office Assistant
Office Attendant