On October 6, Nippon India Mutual Fund (NIFM) purchased 50 lakh shares of Rategain Travel Technology, a SaaS solutions provider for travel and hospitality. In another bulk sale on September 27, NIMF offloaded 1.7 lakh shares of TD Power Systems while DSP Mutual Fund bought two lakh shares of Safari India. Share prices generally rise or fall in response to bulk deals. But why do mutual fund companies make such deals and do they mean anything to mutual fund investors?
Mutual funds buy stocks of different companies as per their investment objectives. The decision for such a transaction is made by the designated fund manager. Very often, Asset Management Companies (AMCs) also execute bulk deals. A bulk deal is when the total quantity of…