Mutual fund as an institutional investor provides the character and strength to capital market and meets the peoples’ requirement of increase their wealth. Since the start of liberalization policy, activity of mutual funds has increased the intensive penetration of market institutionalization in Indian national economy which attracts sufficiently the many role played by it in developmental process. So as to accelerate the developmental process, a rustic not only needs high savings rate but also the high holding pattern of such savings. Savings kept in the sort of idle assets is of no use until or unless deposited or invested somewhere to induce it multiplied. Indian household investors value more highly to invest only 10 percent of their wealth in capital market. The household sector investors have always been the most important contributors of country’s total savings. They have the sort of monetary intermediary like investment trust which may manage their wealth in an exceedingly more productive manner. This is often why mutual funds are presupposed to be the simplest investment vehicle for household investors, and have proved the last word source globally for guiding the investors of small means. Our study could also be useful to many groups of individuals – fund managers, asset management companies, investment policy makers, monetary economists and investors for having a thought about nature and intensity of the problematic areas in Indian mutual funds and also the likely creation of strategies suitable to chase away the negative effects. It’s some broader implications for the investment company professionals like developing the customer/ investor focused strategies, specializing in the areas important to boost fund performance, uncovering hidden growth drivers and framing policies/ regulations conducive to the healthy growth of the mutual funds industry.

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Keywords: Investors, Savings, Global, Capital, Intermediary, Monetary, Contributions, Growth.