RBI announces special liquidity facility for mutual funds

sfg-2026
ForumIAS LATEST
  1. 04 June | MGP Strategy Series | GS Paper 4 (Ethics) with AIR 7 A.R. Rajah Mohaideen Click Here to register for the session →
  2. 04 June | GS Advance Program begins from 4th June 2026 | First 2 classes open to all Click Here to register for the event →
  3. 05 June | MGP Strategy Series | GS Paper 3 Strategy Session with AIR 406 Mannat Luthra Click Here to register for the session
  4. 06 June | Open Orientation on Essay Guidance Program (EGP 2026) Click Here to register →
  5. 07 June | Open Orientation for Current Affairs for Mains 2026 Click Here to register →
  6. 07 June | Sociology Optional Strategy Session with AIR 10 Ujjwal Priyank Click Here to register →

News: Reserve Bank of India(RBI) has announced a special window of ₹50,000 crore for Mutual Funds in view of the pressure that the fund houses are facing in the wake of the Coronavirus pandemic.

Facts:

  • Mutual Funds: It is a type of financial vehicle made up of a pool of money collected from many investors to invest in securities like stocks, bonds and other assets. 
  • They are operated by professional money managers, who allocate the fund’s assets and attempt to produce income for the fund’s investors.
  • Benefits: a) Profession expertise b) Less risk as fund managers invest the pooled money in diversified assets c) Potentially Higher Returns and d) Relatively easier to buy and exit. 
  • Disadvantages: a) High management fees b) Loss of Control by investors and c) Vulnerable to market volatility.

Print Friendly and PDF
Blog
Academy
Community