Institutional Investor

Institutional Investor Mutual funds, Unit Trust, Insurance Corporation of India , banks, and other large institutions which invest their members’ money in shares and bonds, re institutional investors. Since they trade in large volumes, they may play a supportive role when the share market is bearish. When ordinary investors, and even speculators to a certain extent, shy away from the share market, it is the institutional investor who often accounts for the bulk of the trade done on the stock exchange, over a sustained period. The absence of institutional investor sin a bear market can have damaging results. In view of their often substantial holdings they can play a major role in influencing company policy and in takeover bids. They have professional analysts and advisors, and can usually read stock market trends much better than individual investors. With their larger holdings they are often represented on the board of directors, and can influence company policy.

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