ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

S Manjesh RoySubscribe to S Manjesh Roy

Money Market Mutual Funds

Money markets offer superior avenues for deployment of bulk short-term funds in terms of risk, return and liquidity. Money Market Mutual Funds make it possible for retail investors to participate in money markets. Despite the advantages, various constraints have impeded the potential of MMMFs. A lack of long-term vision on part of the mutual fund industry has resulted in low levels of retail penetration. Other structural aspects like a lack of awareness, poor infrastructure for fund transfer and regulatory restrictions have also contributed to the poor impact of MMMFs at the macro level.

Regulating Dividend Payout

Having a formula based or discretionary regime for something as important as dividend payout is inappropriate and may be ineffectual. Regulators may not be fully equipped to handle this complex aspect. The best way to regulate dividend payout would be through an indirect route - by strengthening norms pertaining to corporate governance.
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