The fiduciary responsibility of institutional investors can cause mutual funds to act like:

Question

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Institutional investors, such as mutual funds, have a fiduciary responsibility to act in the best interest of their clients or shareholders. This can cause them to act like inside equity, where they take an active role in influencing the decisions of the companies they invest in to maximize returns for their clients. This is in contrast to debt financing or outside equity where the investor typically has less control or influence over the company's decisions.

The Fiduciary Responsibility of Institutional Investors Can Cause Mutual Funds