Creating a survivorship-bias free data on Indian mutual funds

Abstract

Institutional investors, in particular, mutual funds are major players in most established financial markets. However, in India they are relatively a newer phenomenon with the regulator opening up the market only in the late 1980s. Currently they own about 3-5% of the overall equity market capitalization but account for 12-15% of the daily trading activity in Indian markets. A mutual fund (MF) serves an important role in the development of financial markets by providing a channel through which many investors, including even small investors,can invest in corporate securities.