Newsletter
Markets have been brutal this year, yet retail investors aren’t flinching.
Per ET, between October and February, domestic investors in India have invested nearly ₹1.8 lakh crore into mutual funds, despite a market that hasn’t done much for them and record outflows from foreign investors.
- 💸 Since September, foreign institutional investors (FIIs) have sold out ₹2.1 lakh crore from Indian stocks.
Retail optimism could have multiple reasons. SEBI’s decision to reduce the minimum SIP investment to ₹250 has made it easier for first-time investors to enter the market.
Young investors are also forming a growing part of India’s investor base — who also have the appetite and risk taking ability to take a counter perspective, even when the market doesn’t do much.
Worth noting: monthly SIP inflows have remained steady above ₹15,000 crore, with average investment sizes ticking up.
Big picture: amidst all the noise, India’s investor base is maturing. As they age, they’re shifting away from short-term speculation, instead viewing markets as a reliable tool to beat inflation and gain exposure to India’s growth.
