FIIs Beware!!
Tsunami of Domestic Money is Coming in MF's : P
Rs 9,00,000 crore domestic demand for equities for next five years: Can you see the wealth?
India stands at the cusp of growth. And retail investors must not let this unique opportunity go by. Again! Indians have been selling equities since 1994 and FIIs have been mopping it up.
In reality, we have sold a high return earning asset for the sure comfort of low yielding deposit.
But, thankfully, this is the change for most of it. Today, there are 80 lakh Indians who are doing systematic investment plans (SIPs) every year. They are bringing in roughly Rs 30,000 crore every year into equity mutual funds. This trend is only likely to accelerate as the word of mouth spreads about SIP experience.
India has its fiscal deficit and current account under control. Growth is picking up, investment potential is high, inflation is falling and rupee is stable. India is one of the few countries where interest rates can be brought down even after half percent cut. On a top-down basis, India looks like an oasis among a barren desert.
From a technical point of view, the market has corrected as FIIs have turned net sellers. They have sold more in August and September 2015 than what they have sold in entire 2008 in rupee terms. The correction, however, is a fraction of what happened in 2008. The selling has been offset by domestic investors led by mutual funds.
Courtesy: See More @ http://bit.ly/2xuVz5n
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