Many categories of mutual funds exist, which have different indices as benchmarks, and as per the categorization rules, MFs can hold some cash to invest even in IPOs. So, while the argument that if more money chases few stocks, then valuations go high, and when who hold more sell at peak, prices fall, there is also a chance that, with tighter regulations, stricter norms and transparency, many new companies enter the market, and market grows where the inflows can be diverted.
The point that retail who blindly participate without any idea will see some loss is true.
| Subscribe To Our Free Newsletter |
