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1.8 REVIEW OF LITERATURE

A Literature review is a body of text that aims to review the critical points of current knowledge on a particular topic. Most often associated with science-oriented literature, such as a thesis, the literature review usually precedes a research proposal, methodology and results section. Its ultimate goal is to bring the reader up to date with current literature on a topic and forms the basis for another goal, such as the justification for future research in the area.

A good literature review is characterized by: a logical flow of ideas; current and relevant references with consistent, appropriate referencing style; proper use of terminology; and an unbiased and comprehensive view of the previous research on the topic.

Here we discuss on different reviews related to the following:

2.1 Investors and Investment
2.2 Mutual funds
2.3 Investors Attitude towards Mutual Fund

2.1 Investors and Investments

Investors in emerging markets say that they look at market volatility as a good opportunity to increase the level of risk in their portfolio. On the other hand those in the developed markets say that volatility would make them go for an increased allocation in cash and exercise increased caution with regard to investment. “Investors increasing allocation of cash is not because their ability to bear that risk has been impacted”, says Bansal. [1]

JOHN C. BOGLE [2] the former CEO of Vangaurd Group Of Mutual Funds, in his article “Six Lessons for Investors - Be diversified and don't assume past performance will continue” on Jan 08, 2009 says, There is almost no limit to the ability of investors to ignore the lessons of the past. This cost them dearly last year. Here are six of the most important of these lessons:

1) Beware of market forecasts, even by experts.

2) Never

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