We study the role mutual funds play in the recovery from fast intraday crashes based on data from the National Stock Exchange of India for a single large stock. During normal times, trading activity and liquidity provision by mutual funds is negligible compared to other traders at around 4% of overall activity. Nevertheless, for the two intraday market-wide crashes in our sample, price recovery took place only after mutual funds moved in. Market stability may require the presence of well-capitalized standby liquidity providers for recovery from fast crashes.

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从快速崩溃中复苏：共同基金的作用

我们根据印度国家证券交易所对一只大型股票的数据研究了共同基金在从快速盘中崩盘中恢复的作用。在正常时期，共同基金的交易活动和流动性提供与其他交易者相比微不足道，约占整体活动的 4%。然而，对于我们样本中的两次盘中市场崩盘，价格仅在共同基金进入之后才出现。市场稳定可能需要资本充足的备用流动性提供者才能从快速崩盘中恢复过来。