Let me give a small example of what a trend means...something that starts small and then keeps growing bigger and bigger and sustains
— Deepak Singh (@smarket) February 1, 2017
There are some trends which are so obvious like the one below. I tweeted this two years back -
My forecast for next 12-18 months: Indian Mutual Fund will soon have problem of plenty when it comes to putting money in equity market
— Deepak Singh (@smarket) July 13, 2015
This is how the trend started of putting money into equities way back in May 2014: Narendra Modi took office
Retail Investors are back in the market. Look at Mutual fund flows over last 12 months pic.twitter.com/KFdHqiSLbJ
— Deepak Singh (@smarket) May 10, 2015
The trend gathered more momentum by Dec 2015
DIIs have put in 72500 crores in last 12 months in Indian stocks.
How much FIIs....just 11500 crores.#Realdata not funny opinion
— Deepak Singh (@smarket) December 10, 2015
The trend helped Indian market big time during demonetization. In CY 2017: Indian Mutual Funds have pumped in Rs. 44000 crores in Indian equities till date. In last twelve months - they have pumped in Rs. 78000 crores. Domestic money in India today is much bigger than FIIs.
But Once Upon a time - During UPA2 - this was the state of flows in Equity Mutual Funds
This was the state of MF flows into Indian equities in 12 months just before Modi Govt came to power.
Indian Mutual Funds were net sellers to the tune of 7400 crores in first six months of CY2014. Just look at the state of flows into Equity Mutual fund during UPA2 - Big Selling/Outflows.
There has been dramatic turnaround and Narendra Modi Govt should get full credit for this change. The message is clear: Indian businesses can start investing big and Indian junta is ready to fund big growth ideas. The real financialization of Indian economy has started big time. And yes the trend started long back - see this Sep 2015 tweet
Once domestic flows in equity picks momentum, then Indian market can shock everyone. That's the new theory and sounds logical
— Deepak Singh (@smarket) September 13, 2015
The blogpost is purely for educational purpose.
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