2008-like crisis won't hit Indian MFs: RMF
The India's largest fund house has also asserted that a doomsday scenario like the one experienced during the global financial crisis of 2008 was unlikely to return to Indian markets, as the variables are very different this time around.
In a research note, Reliance MF said: "In the current volatile environment, investors have started extrapolating the current context and speculating about the repeat of the doomsday scenario of 2008."
However, the current environment is quite different and most variables now are far superior in comparison to those prevailing at that time, it said.
It may be recalled that the Indian mutual fund industry was almost wiped out by the global financial crisis in 2008 because it could not handle the redemption pressure by fleeing investors and instead had to be bailed out by authorities - the problem was caused by the Indian mutual funds industry which was worsened by the global meltdown.
"From an investor standpoint, we think notwithstanding the events/risks in the next few months, if one invests in equities now, in the ensuing period, one can expect relatively better returns over the following 12-18 months," it noted.
In the last few days, markets in India and abroad have fallen sharply amid mounting debt worries in the US and Europe.
The announcement of the US debt rating downgrade by ratings agency S&P
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