Ramachandra Patil, the NSE's managing director, says that the size of each futures lot, around $6,000 for a one-month contract, makes them affordable.Local mutual funds, hurt by the recent market slump, might also like the hedge that index-futures can offer.
In the financial sector, Washington Mutual was hurting, as the bank fell 18.3%, even with no news of note.
(See "Financials And Oil: The Duel Continues").. Washington Mutual was hurting, as the bank fell 85 cents, or 18.3%, to $3.80, even with no news of note.
Now, regulators are studying whether such arrangements at mutual fund companies hurt small investors while unfairly enriching the portfolio managers.
The unmistakable conclusion is that even in a bear market, market timing and actively managed mutual funds generally hurt investment performance more than they help it.
In a 2008 settlement with the Securities and Exchange Commission, Mr. Sapio said that he had helped to "facilitate improper trading practices" like market timing that hurt mutual fund shareholders and enriched hedge funds and other deep-pocketed investors.
"There has to be a better way of retaining employees than putting them into businesses that create conflicts with, and potentially hurt, mutual fund shareholders," said Mr. Brown, who runs the investment protection bureau for the attorney general, Eliot Spitzer.
New dirt will hurt specific mutual fund advisers and brokerages.
Hot mutual funds end up hurting themselves and the hot stocks they buy, the two professors show.
Schwab clients continued to pour money into mutual funds, but that hurts the company's profits because Schwab makes more money from active investors than from passive ones.
