 "illustration: Ajay Mohanty")
In the last decade, the mutual fund industry has grown remarkably. However, we remain stuck with a fledgling bond market. With a large base of assets, ordinary fluctuations can lead to a day of large sales by mutual funds, which will kick off a large drop in bond prices, which can trigger off more redemptions, and so on. We do wrong by building a large superstructure of a mutual fund industry on feet of clay. This calls for short-term actions — changing the nature of the liquidity promised by mutual funds — and building the Bond-Currency-Derivatives Nexus.
The growth of
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper
