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Part - VIII
Equity arbitrage fund aims to exploit any arbitrage opportunities that may arise from derivatives trading. A Fund manager will buy the equities in the capital market and sell them in the futures market thereby making good the difference as profit.
Upcoming Funds
The other types of mutual funds that are upcoming are multifunds, All-Weather Funds, Emerging Growth Funds, Precious Metal Funds and Green funds. All weather funds are those, which are structured to survive in all the phases of the business cycle. Emerging Growth Funds are those, which buy the rapid growth companies. Precious Metal Funds are those, which choose gold, platinum and other valuable metals. Green Funds are those funds, which invests in companies believed to be environmentally responsible by the fund managers.
The Indian mutual fund industry is in the development and consolidation stage. Having the wide variety of mutual fund schemes the only thing the funds need to do is to catch the discerning customers. Proper marketing and customer relationship strategies will play a great role in the development of the mutual fund industry in India. The mutual funds should think of widening their reach to the rural segment, which still remains untapped in India. It is too early to say whether the asset management companies will be successful in making the mutual funds popular in India. For making the mutual funds successful investor education has to be at the top priority. Not only the regulators but also the asset management companies should take a step further in this regard. It is only time that will depict whether the mutual funds will be on the winner’s platform.
Concluded.
* Contributed by -
Sarthak Kumar Rath,
PGDBA (Finance), ICFAI Business School,
Currently working as Associate Consultant at ICIT Software Center Pvt. Ltd.
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