The main (#1) challenges and opportunities in the capital markets today are driven primarily by inadequate supply of good companies and/or investment alternatives.
Closed-End Mutual Funds (CEMFs) can play a very important, decisive, and sustainable role in providing much needed capital to the entire market as well as a leadership role in institutionalising the investment industry. Multiple purposes can be served. These include providing capital to government (treasury) for key infrastructure projects and highly potential, listed and unlisted companies, and simultaneously facilitating exits via listing and increasing supply of quality scrips to the markets for the retail investors. This is the case (in various forms) that revolutionised the respective investment industry of almost every developed market like our neighbour India leading to improved, efficient flow of funds and a direct, positive impact on the economy.
