I know a lot of people will be entering the world of stock markets and equities via mutual funds.
Truth is mutual funds are taking up clients beyond their Fund Manager’s appetite. Now they have shit load of money to invest and less of business.
Some sane mutual funds stopped accepting new clients because they knew the past is not going to be same as future.
Below are the possibilities:
– New IPOs will be required to churn money coming via mutual funds
– Value multiples are going to be revised to higher side (PE of 15-20 will be bargain buys)
– Companies will start more of fund raising via QIPs