Volume : III, Issue : V, May - 2013

The Growth of Mutual Funds and Regulatory Challenges

N. S. Santhi, Dr. K. Balanaga Gurunathan

Abstract :

Mutual funds are one of the most innovative financial products introduced in India during the period 1964. It becomes popular and the market size has been increased after 1990 by allowing public sector companies entered into mutual funds. The original mutual funds were simple, low risk and easy to understand and recent mutual funds have additional dimensions of risk. The additional risks, complexity, and reduced transparency have resulted in heightened attention by regulators. Concerns related to systemic risk and excess volatility, suitability for retail investors, lack of transparency and liquidity have been raised. These concerns are being addressed by a shift towards multiple counterparties, overcollateralization, and disclosure of collateral holdings and index holdings. The appropriate regulatory and market reforms can ensure the continued success of mutual funds.

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

N.S.Santhi, Dr. K. Balanaga Gurunathan The Growth of Mutual Funds and Regulatory Challenges Indian Journal of Applied Research, Vol.III, Issue.V May 2013

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