InvestorQ : What percentage of hold does the mutual fund industries held in the stock market?
Anjali Desai made post

What percentage of hold does the mutual fund industries held in the stock market?

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11 months ago
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Mutual funds generally buy stocks in lots, i.e. they bulk buy stocks. Given the quantities they transact in, they do influence the price of a particular stock. However, as a result of this, the effect on the overall market is negligible. Even while buying or selling shares of a particular company/companies, they buy it in lots.

This helps in staggering the fluctuations in prices as a result of their transactions. Seemingly, there are protocols set in place for mutual funds by the Securities and Exchange Board of India (SEBI) so as to avoid any wrongdoing as a result of their effect on a particular stock. Of course, when we consider a bull run or a bear phase, the impact of mutual fund buying/selling is amplified and widespread. But these are exceptional cases and have no impact on everyday trading.

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