Once upon a time foreign institutional investors used to be the breaking news in our country. If they come for investment then our market went up and if they go out, our market come down and its become news to all of us. In this way our economy was governed by foreign institutional investors.
Our population used to be burden to us and now it is asset to our country just because of some policy changes from government side. We were and we are biggest consumer but that time we did not have right and adequate policy for manufacturing, services and agriculture. Small changes in policies convert our population into opportunity instead of burden.
From August 2023 to till November 2023 foreign institutional investor withdrew 50 thousand crores mainly from auto and banking sector approximately which are no impact on our economy. Because our domestic participation is increasing month on month. It does not mean our auto and banking sector getting weak. It is just because of they booked profit and bond yield increased in USA. Both the sectors are doing fairly good and we have seen it in recent festive seasons.
Our equity mutual fund contribution is approximately 35 thousand crores per month half in the form of SIP and half in the form of lumsum investment. Many other way domestic investors are participating in our economy and we are becoming stronger day by day.
So proudly we can say no more our Indian Economy is driven by foreign Institutional Investors!
Written By :
Ajay Tiwari (PFP, IRDAI, AMFI)
Founder of A T Financial Services