scorecardresearchHow swing pricing mechanism help the mutual fund investors? We explain

How swing pricing mechanism help the mutual fund investors? We explain

Updated: 15 Dec 2021, 12:54 PM IST
TL;DR.
The markets regulator SEBI announced a new system of swing price mechanism to protect the interests of small investors in case of massive redemptions. Let us understand what these new rules mean for unit holders of debt mutual funds
When a fund faces a high pressure of redemption from a number of investors, this new pricing model of debt mutual funds will come into force.

When a fund faces a high pressure of redemption from a number of investors, this new pricing model of debt mutual funds will come into force.